Several signals in November 2025 suggest a potential shift in the crypto market, with capital beginning to rotate from Bitcoin into altcoins. This movement, while not yet a full-blown “altseason”, indicates a changing landscape that traders and institutional players are closely watching.
A Shift in Market Leadership
A key indicator being monitored is the decline in Bitcoin’s market dominance. Data from Q3 2025 shows Bitcoin’s share of the total crypto market cap fell to around 56.9%, a significant drop from its typical bull-market averages. This metric often serves as a precursor to altcoin rallies, as it suggests investors are starting to seek higher returns in assets beyond Bitcoin.
Concurrently, Ethereum has shown notable strength. After the U.S. election results in November, ether even managed to outperform bitcoin, signaling a potential resurgence and boosting optimism for the broader altcoin market. Historically, Ethereum’s strength often bolsters confidence across the altcoin sector.
Evolving Capital Flows and Key Performers
The current market dynamic is different from past cycles. Unlike previous altseasons where capital simply rotated from Bitcoin into altcoins, today’s rallies are increasingly fueled by stablecoins (USDT and USDC) acting as the primary liquidity pool. This means funds are flowing directly from stablecoins into specific narrative-driven altcoins, leading to more selective and rapid sector rotations rather than a broad, market-wide pump.
Recent market activity has highlighted this trend. In November, tokens like XRP, XLM, and HBAR posted gains of more than 10%, a move interpreted as being backed by retail enthusiasm. Furthermore, the total value locked (TVL) in decentralized finance (DeFi) protocols has climbed, reaching $142.8 billion, indicating growing confidence and capital deployment within the Ethereum ecosystem and beyond.
Navigating the New Altcoin Landscape
For market participants, this environment presents both opportunity and challenge. The fact that capital is chasing specific narratives—such as AI, DeFi, or PolitiFi—means that thorough research is more critical than ever. Success may not come from simply buying any altcoin, but from identifying projects with strong fundamentals and clear use cases that are attracting institutional-grade capital.
While the Altcoin Season Index readings in early November were still conservative, the combination of falling Bitcoin dominance, Ethereum’s resurgence, and robust stablecoin-fueled inflows creates a compelling case for a potential altcoin rally. The market appears to be in a tentative but optimistic state, with many investors cautiously positioning for what the coming weeks may bring.
