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HomeCRYPTOCURRENCY Altcoin Surge Increases as Bitcoin Dominance Declines in May 2025

Altcoin Surge Increases as Bitcoin Dominance Declines in May 2025

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Bitcoin Dominance Drops to 63.89% in Early May 2025

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

Ethereum (ETH) rose 13% in the last 24 hours. Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) gained more than 6%. The rise in altcoin prices followed months of Bitcoin outperforming the broader crypto market.

The drop in Bitcoin dominance comes after it hit its highest level since January 2021. This shift indicates that capital may be moving from Bitcoin to other cryptocurrencies. CoinMarketCap’s Altcoin Season Index also rose, pointing to increased interest in altcoins.

The Altcoin Season Index rose from 23 to 36 between May 5 and May 9, 2025. The index tracks how many top 100 coins outperformed Bitcoin over the past 90 days. 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 still 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. The drop showed Ethereum’s continued underperformance against Bitcoin. The ratio then bounced, signaling a possible structural rotation.

Data from TradingView shows this move occurred around the same time Bitcoin’s dominance declined. Ethereum’s gain of nearly 13% in one day contributed to the ratio’s recovery.

CryptoQuant CEO Ki Young Ju commented on this trend. He said, “Bitcoin Cycle Theory is obsolete,” pointing to changes in how capital moves through the market. This statement followed Ethereum’s rebound and increased altcoin trading.

YTD Data Shows Bitcoin Still Leads in 2025

Bitcoin is up 10% year-to-date (YTD) in 2025, according to 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.

Despite poor performance over the full year, altcoins have started May with gains. Ethereum’s rise, along with SOL, DOGE, and ADA, shows that capital is returning to altcoins after months of focus on Bitcoin.

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