Ethereum ignites the market, Solana takes over and soars: Is the altcoin season here?

After the strong breakout of historical highs in Bitcoin, the attention of the crypto market is quietly shifting towards Ethereum, Solana, and other high Beta assets. Multiple on-chain data and capital flow signals indicate that a round of altcoin-led market activity may have quietly begun.

Ethereum and Solana Perform Strongly, Mainstream Capital Accelerates Entry

Recently, the market performance of Ethereum and Solana has been particularly eye-catching. According to data from the Huobi HTX platform, as of now, Ethereum (ETH) has risen from 2474 USDT at the beginning of July to a high of 3857 USDT, an increase of over 55%.

This significant upward trend is not coincidental. On-chain monitoring platform Lookonchain data shows that from July 1 to 21, 23 whales or institutions have collectively purchased 681,103 Ethereum, amounting to approximately 2.6 billion USD, indicating that ETH is becoming a core target for mainstream capital accumulation in the market.

At the same time, the ETF market is also releasing positive signals. According to Trader T monitoring, on July 21, the net inflow of ETH spot ETFs reached 297 million USD, setting a record for the highest single-day inflow, accounting for 80% of Bitcoin ETF trading volume, and showing a clear trend of net inflows for 12 consecutive days.

On the other hand, Solana, once hailed as the "Ethereum killer," has also performed well. Data from the Huobi HTX platform shows that Solana (SOL) has surged from 157.8 USDT to a high of 204.6 USDT, an increase of 29.6%. Meanwhile, Solana ecosystem tokens have also seen widespread gains. As of 10 AM on July 22, RAY rose 21.01% in the last 24 hours; PENGU rose 20.5%; JUP rose 17.14%; and AI16Z rose 14.73%.

The strength of ETH and SOL is not just a single point explosion of individual mainstream assets, but rather a structural signal—capital is shifting from Bitcoin to more volatile and growth-oriented altcoin sectors, and the curtain on the "altcoin season" may have officially opened.

BTC Market Share Continues to Decline, Altcoin Season Index Strengthens

As ETH and SOL rise in succession, the market structure is also quietly changing. Bitcoin's market dominance is gradually being eroded, providing space for capital to flow into altcoin assets.

Data from Coinmarketcap shows that Bitcoin's market share has been continuously declining, currently reported at 60.1%, a new low since March of this year. Meanwhile, the Altcoin Season Index has risen, peaking at 55 on July 21 and currently reported at 50. This index indicates that in the past 90 days, about 50 projects among the top 100 cryptocurrencies by market capitalization have outperformed Bitcoin.

Data Source: CoinMarketCap

Data Source: CoinMarketCap

Chloe (@ChloeTalk1), a columnist for HTX DeepThink and a researcher at HTX Research, analyzes that Bitcoin's strong breakout to new highs has sparked widespread expectations for an "altcoin activation season." This round of Bitcoin's rise benefits from its safe-haven attributes and the label of dollar-denominated assets. With rising Japanese government bond yields and a potential turning point in the global interest rate structure, combined with a bullish bias in the options market, this forms an important structural basis for capital switching from BTC to altcoin assets.

Market View: The Real Altcoin Bull Market May Still Be Ahead

QCP Capital, in its latest research report, points out that multiple indicators suggest that the altcoin season may have quietly begun. The Altcoin Season Index has surpassed 50, reaching a new high since last December. The passage of the "GENIUS Act" provides a clear regulatory framework for stablecoin issuance, prompting corporate finance departments to view ETH, SOL, XRP, ADA, and others as the new generation of crypto reserve assets. Furthermore, if a staking-based Ethereum spot ETF is approved, it is expected to further drive institutions to shift allocations from Bitcoin ETFs to ETH. Last week, ETH spot ETFs saw net inflows exceeding BTC for two consecutive days, significantly boosting confidence among institutions like BlackRock. The options market also shows strong bullish signals, with optimistic expectations for the fourth quarter.

Contract whale James Wynn believes that BTC could reach around 145,000 USD by the end of July. Subsequently, a sharp correction is expected, dropping to 110,000 USD. In the next 1 to 2 months, a strong altcoin bull market is anticipated, marking the phase when everyone truly starts to FOMO. He also predicts that Bitcoin's dominance has been maintained for too long, and altcoins are gradually rising. By the fourth quarter, when the Federal Reserve begins to cut interest rates, Bitcoin will likely enter a new round of increases, potentially rising to between 160,000 and 240,000 USD.