Bitcoin Dominance Drops to 63.89%, Opening the Door for Altcoin Season

Ethereum (ETH) rose 13% in the last 24 hours. Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) gained more than 6%.

Bitcoin dominance dropped from over 65% to 63.89% in early May 2025, according to TradingView. The decrease occurred soon after Bitcoin crossed $100,000 for the first time since February 3.

The decline in Bitcoin dominance follows its rise to the highest level since January 2021. This shift suggests that capital may be moving from Bitcoin to other cryptocurrencies.

Crypto exchange, CoinMarketCap's Altcoin Season Index also rose, indicating increased interest in altcoins. The index, which tracks how many of the top 100 coins outperformed Bitcoin over the past 90 days, scored 23 on May 5 and 36 on May 9. It excludes stablecoins and tokenized assets like WBTC and stETH.

A score below 25 signals Bitcoin Season, while a score above 75 marks Altcoin Season. Current levels place the market in a neutral state. In April, the index fell to 12, its lowest point since December. It had previously reached 87, a yearly high.

The jump to 36 reflects stronger altcoin performance in early May. The index remains below the 75 mark needed to confirm a full altcoin season. However, it shows a shift from the deep Bitcoin-dominated phase in April.

ETH/BTC Ratio Rises After Hitting 2020 Lows

The ETH/BTC ratio recently touched its lowest level since 2020. This drop demonstrated Ethereum's continued underperformance against Bitcoin over the past year.

The ratio then bounced, indicating a possible structural rotation in the market. Data from TradingView shows this move occurred around the same time Bitcoin's dominance declined and Ethereum gained nearly 13% in one day.

CryptoQuant CEO Ki Young Ju commented on this trend, saying, "Bitcoin Cycle Theory is obsolete." He highlighted changes in how capital moves through the market with statements like, "WETH is being used more than ETH now."

YTD Data Shows Bitcoin Still Leads in 2025

Bitcoin is up 10% year-to-date (YTD) in 2025, according to blockchain data provider, Messari. Most altcoins remain down. Ethereum has dropped 30% YTD. Other major tokens like Dogecoin (DOGE), Chainlink (LINK), Avalanche (AVAX), and Shiba Inu (SHIB) are also down over 20%.

XRP is the only top altcoin outperforming Bitcoin this year. It has gained more than 12% YTD. The rest of the altcoin market has yet to recover from earlier losses.

However, despite the poor performance over the full year, altcoins have started May with gains. Ethereum's rise, along with Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), shows that capital is returning to altcoins after months of focus on Bitcoin.