Bitcoin slows down, Altcoins Surge: Coinbase believes that there is a completely scaliest always season here

Coinbase said that the annual prospects of the third quarter of 2025 remain constructive, even if the image of an Altcoin season has evolved.

The crypto exchange added that the current market conditions now suggest a possible shift to a full Altcoin season approaching as September.

Altcoin Rotation

In his last research, Coinbase explained The dominance of Bitcoin’s market had fallen from 65% in May 2025 to around 59% in August. This indicates early signs of capital rotation in Altcoins. CMC’s Altcoin Season Index also remains in the Low 40s, below 75 threshold that points historically to an Altcoin season, even because the total Altcoin market capitalization has risen by $ 1.4 trillion of 12 August by more than 50% to $ 1.4 billion.

These trends suggest that the circumstances may be on their way to a more widespread Altcoin season on the way to September.

Coinbase also emphasized that liquidity trends become more favorable for Altcoins, and known improvements in order book depth, higher location and eternal trade volumes and reduced slipper.

These factors make it easier for investors to carry out transactions without significant price effects, which supports broader market participation in Altcoins and therefore a potential momentum in the direction of a large-scale Altcoin season.

Altcoin season divergence

Coinbase noted that the divergence between the Altcoin Season Index and the total Altcoin market capitalization is largely a reflection of the growing institutional interest in Ethereum (ETH). This question is partially powered by digital assets treasuries (DATS) and the wider story about Stablecoins and Real-World assets (RWAS).

Bitmine Immersion Technologies, for example, has purchased 1.15 million ETH through a new $ 20 billion increase, giving it the capacity to acquire up to $ 24.5 billion in ETH. Similarly, Sharplink Gaming, a former ETH DATS leader, now has around 598,800 ETH.

Regarding assets with a higher beta bound to ETH, tokens such as ARB, ENA, LDO and on the most sensitive. LDO even showed the strongest response to the recent ETH rally, by winning 58% month to date. LDO offers a relatively simple ETH exposure due to liquid and is currently on a beta of 1.5, which means that the price has the tendency to be 50% more volatile than ETH. This helps to strengthen both potential profits and losses.

Coinbase also stated that the recent appreciation of LDO was further supported by a US SEC statement about liquid deployment issued on 5 August. According to the staff of the Division of Corporation Finance, the use of liquid does not constitute the supply or sale of effects if the activities are mainly ‘ministerial’ and rewards are one-off-one from the protocol.

In general, the institutional demand for ETH remains, in combination with regulatory clarity about the use of liquids, influencing market behavior and contributes to selective altcoin performance.