Ethereum, Layer-1s Outperform as Bitcoin Stalls Near All-Time Highs
Altcoins are gaining momentum as Bitcoin takes a breather, with investors rotating into ETH, SUI, SEI, and other ecosystem tokens amid signs of a broader rally.
After touching $124,000 earlier this week, Bitcoin has entered a phase of consolidation. This pause is giving space for a strong altcoin rotation, with Ethereum and several next-gen layer-1s leading the charge.
Altcoin Season in Motion?
Ethereum has jumped 23.3% over the past seven days, more than double Bitcoin’s 9.3% gain in the same period. Meanwhile, SUI and SEI have posted massive weekly gains of 36% and 41%, respectively, fueled by ecosystem growth and rising user activity.
Unlike previous cycles dominated by memecoins, this rotation appears more measured and fundamentals-driven. Memecoin dominance has been fading, especially after high-profile tokens tied to political figures like Donald and Melania Trump failed to maintain momentum. That pullback has cleared the way for real activity around ecosystem assets to shine.
Metrics Support the Shift
Key indicators are signaling the rise of a new altcoin wave:
- CryptoQuant’s altcoin season trigger—based on market value vs. realized value (MVRV) ratios—has been elevated for several consecutive weeks, its longest stretch since mid-2024.
- The CoinDesk CD20 Index, tracking broader crypto assets, is outperforming the CD5, which focuses on large-cap tokens.
- CoinMarketCap’s altcoin season index has surged to 36/100, its highest mark in months.
BTC Still Holds the Spotlight
Despite this shift, altcoin performance still hinges on Bitcoin’s next move. BTC remains rangebound, with support at $112,000 and resistance near $124,000. If Bitcoin breaks higher, capital could snap back into BTC dominance. A breakdown, meanwhile, might dampen risk appetite across the board.
For now, the setup favors altcoins, particularly those with strong ecosystem traction. But as always, Bitcoin remains the macro driver—and its direction will ultimately dictate how long this altcoin season lasts.
