TOTAL3 market capitalization reaches a record of $1.18 trillion, marking an acceleration of momentum within the altcoin segment of the cryptocurrency market.
USDT's dominance has sharply declined, suggesting that capital is rotating into risk assets.
The TradingView code TOTAL3 tracks the market capitalization of all cryptocurrencies except Bitcoin (BTC) and Ethereum (ETH), reaching an all-time high of $1.18 trillion on Monday. This metric also recorded its highest weekly closing price on Sunday, surpassing the peak market capitalization of 2021.
Traders use the TOTAL3 chart as an indicator of the health of the altcoin market, as its aggregate valuation provides insights into capital rotation patterns and the strength of the broader altcoin ecosystem.
Adding fuel to the speculation of an altcoin season is the 11.8% plunge in USDT's dominance over the past week, dropping from 4.74% to 4.18%. The sharp decline in Tether's market share typically indicates that investors are rotating capital from stablecoins into higher-risk assets, seeking greater returns as market confidence builds. A drop below 4% would match the lowest point of USDT dominance since January 2025.
Cryptocurrency trader Honey also expressed bullish sentiment, identifying a breakout of a cup-and-handle pattern on the weekly chart. Honey stated:
A deep analysis of the performance data of the top 100 crypto assets highlights the growth strength and complexity of this emerging altcoin cycle.
Data shows that altcoin momentum has decisively accelerated over the past three months, with cumulative returns exceeding six times that of BTC. This shift indicates that while BTC continues to anchor the market, capital is increasingly rotating into higher-risk assets, a sign of the formation of an "altcoin season."
However, not all indicators are fully aligned. The average return of the top 100 crypto assets shows that currently only 60% of the gains come from altcoins, below the typical threshold of 80% to 90% that defines a mature altcoin season.
Meanwhile, the altcoin season index has climbed to 69%, nearing the critical 75% line that confirms widespread altcoin dominance.
Adding a layer of caution, CryptoQuant reported a net outflow of $4 billion in ERC-20 stablecoins from exchanges since September 22, with Binance driving $3 billion (75%) of the total outflow. Its combined stablecoin reserves have decreased from $45 billion to $42 billion.
Large withdrawals typically follow market gains, indicating that investors are taking profits and moving capital out of exchanges. Lower stablecoin balances reduce "dry powder," limiting purchasing power and increasing the market's vulnerability to short-term price declines.
Related: Gold is just a step away from $4,000: What does this mean for Bitcoin (BTC)?
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making decisions.
Original article: “TOTAL3 Market Cap Rises to $1.18 Trillion, USDT Dominance Falls: Is Altseason Here?”
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