Crypto: Traders Become Much More Selective

The crypto market has not yet entered a confirmed altseason, however, many altcoins are significantly outperforming Bitcoin. Unlike previous cycles, various capital is concentrating on a limited number of projects, mainly those that generate revenue or meet specific use cases.

In Brief

• Altseason is approaching, but it is not yet confirmed.
• The Altcoin Season Index is progressing, without reaching the threshold of 75.
• Capital is concentrating on a limited number of altcoins.
• Revenue-generating protocols attract more investors.
• Memecoins remain active, despite stronger market selection.

Altseason is Approaching Without Being Confirmed

Bitcoin's dominance is currently around 58.6%. A sustained correction of this indicator could signal a significant rotation of capital towards the rest of the market. For now, increases remain strong, yet very uneven across sectors and projects.

The Altcoin Season Index is around 64 out of 100, compared to 48 the previous week. This evolution reveals that an increasing number of altcoins are outperforming Bitcoin over a 90-day period, however, it remains below the threshold of 75 used to confirm an altseason.

Four indicators justify this gradual shift:

• The Altcoin Season Index stands at 64 out of 100;
• Bitcoin's dominance remains below 60%;
• The top ten altcoins concentrate nearly 80% of the market;
• Revenue-generating protocols are among the winners.

The crypto market thus finds itself in an intermediate phase. Many altcoins are recording significant performances characteristic of an altseason, without the majority of major cryptos having surpassed Bitcoin.

Profitable Protocols Attract More Capital

The best performances do not concern exclusively one category. Over a thirty-day period, the PONS token has exploded by over 350%, while Uniswap has progressed by over 110%. Arbitrum has risen by over 150% and NEAR by nearly 180%, according to available data.

However, David Hoffman, co-founder of Bankless, noted a common point among many winners like UNI, ARB, JUP, and ONDO. He stated:

They make money, they all generate revenue.

Such a characteristic indicates that investors are increasingly valuing economic models over prices during previous speculative phases.

This selection particularly benefits exchange protocols, on-chain derivatives platforms, and certain DeFi projects. HYPE, LIT, UNI, and MORPHO are among these various projects.

However, such progress remains partial. The revenue of a protocol is still not redistributed to its token holders. Significant activity does not guarantee either sustained demand for the asset or an immediate increase in its price.

Memecoins Remain Present Despite This Selection

Speculation remains present despite the return of fundamentals. Thus, the launch platforms for memecoins PUMP and PONS continue to record considerable activity. Data studied by linch co-founder Sergej Kunz even reveals that memecoins attracted the largest growth in the number of buyers over 30 days.

Nevertheless, their weight among the best performances seems to be decreasing. Two memecoins remain the top performers over a week among about twenty cryptos. Pudgy Penguins was then the only representative of this category in the weekly ranking.

Other themes have captured part of the flows. Privacy-related cryptos, including Zcash and Moreno, are progressing alongside AI-related tokens like TAO and VVV. Additionally, tokenized real-world assets and on-chain stocks have attracted new buyers.

This diversity does not provide evidence of a global rotation. It rather indicates that multiple narratives coexist, with rapid movements between DeFi, AI, privacy, RWA, and memecoins.

A Narrower Altseason Than in Previous Crypto Cycles

Now, the top ten altcoins represent nearly 80% of the total market capitalization of this category, compared to about 70% at the end of 2024, according to Talos. Samar Sen, head of international markets at the company, describes "a market where capital is concentrating around a smaller number of assets".

Broker participation is also said to have declined. Thus, their share in altcoin trading would have dropped from nearly 65% at the end of 2024 to 32% in September 2026. Liquidity providers and market makers may play a less capital role in the current progression.

"Investors are focusing on specific narratives and ecosystems rather than treating altcoins as a single global strategy," emphasizes Samar Sen.

A true altseason may now require an expansion of the rise beyond a few leaders. As long as the index remains below 75 and the top ten altcoins concentrate most of the capital, the market resembles more of a selective rotation than a generalized progression.