Ethereum ignites the market, Solana takes the baton and surges: Is alt season here?
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Ethereum ignites the market, Solana takes the baton and surges: Is alt season here?
Multiple on-chain data and fund flow signals indicate that a market rally led by altcoins may have quietly begun.
Navigating Web3 tides with focused insightsAfter Bitcoin强势ly broke through its historical high, the crypto market's attention is quietly shifting toward high-beta assets such as Ethereum and Solana. Multiple on-chain data points and capital flow signals indicate that a market cycle led by altcoins may have already quietly begun.
Ethereum and Solana show strong performance as institutional capital accelerates inflows
Recently, Ethereum and Solana have stood out in market performance. According to market data from Huobi HTX, ETH has risen from 2,474 USDT at the beginning of July to a high of 3,857 USDT, representing a gain of over 55%.
This significant rally is no coincidence. On-chain monitoring platform Lookonchain shows that between July 1 and July 21, 23 whales or institutions collectively purchased 681,103 ETH, amounting to approximately $2.6 billion, indicating that ETH is becoming a core asset for major market players to accumulate.
Meanwhile, the ETF market has also sent positive signals. According to Trader T, on July 21, spot ETH ETFs recorded a net inflow of $297 million—the highest single-day inflow in history—accounting for 80% of Bitcoin ETF trading volume, and marking 12 consecutive days of net inflows, clearly showing a strong capital tilt.
On the other side, Solana, once dubbed the "Ethereum killer," has also delivered impressive results. Market data from Huobi HTX shows that Solana (SOL) surged from 157.8 USDT to a high of 204.6 USDT, gaining 29.6%. At the same time, tokens within the Solana ecosystem broadly rose; as of 10:00 on July 22, RAY gained 21.01% in the past 24 hours, PENGU rose 20.5%, JUP increased 17.14%, and AI16Z climbed 14.73%.
The strength in ETH and SOL is not just isolated momentum in individual blue-chip assets, but rather appears to be a structural signal—that capital is shifting from Bitcoin to more volatile and growth-oriented altcoin sectors, suggesting the long-anticipated "alt season" may have officially begun.
BTC dominance continues to decline while altcoin season index strengthens
As ETH and SOL take turns rallying, the market structure is also subtly changing. Bitcoin’s market dominance is gradually eroding, creating space for capital to flow into alt assets.
Coinmarketcap data shows that Bitcoin’s market share has been steadily declining, now at 60.1%, the lowest since March this year. Meanwhile, the Altcoin Season Index has risen, reaching a high of 55 on July 21 and currently standing at 50. This index indicates that, over the past 90 days, around 50 out of the top 100 cryptocurrencies by market cap have outperformed Bitcoin in gains.
Data source: CoinMarketCap
Data source: CoinMarketCap
Chloe (@ChloeTalk1), author of the HTX DeepThink column and researcher at HTX Research, analyzed that Bitcoin’s breakout above all-time highs has fueled widespread market expectations for an “alt activation season.” This Bitcoin rally was driven by its safe-haven attributes and status as a dollar-credit-linked asset. With rising Japanese government bond yields and a potential turning point in global interest rate structures, combined with a bullish bias in options markets, these factors form the key structural basis for capital rotation from BTC into alt assets.
Market outlook: The real altcoin bull run may still lie ahead
QCP Capital stated in its latest research report that multiple indicators suggest the alt season may have quietly begun. The Altcoin Season Index has broken above 50, hitting its highest level since December last year. The passage of the GENIUS Act provides a clear regulatory framework for stablecoin issuance, prompting corporate treasury departments to view ETH, SOL, XRP, ADA, and others as next-generation crypto reserve assets. Moreover, if staked Ethereum spot ETFs are approved, it could further drive institutional allocation shifting from Bitcoin ETFs to ETH. Last week, spot ETH ETFs saw net inflows exceeding those of BTC for two consecutive days, signaling significantly growing confidence among institutions like BlackRock. Options markets also show strong bullish sentiment, with optimistic expectations for Q4.
Contract whale James Wynn believes BTC may reach around $145,000 by the end of July, followed by a sharp pullback down to $110,000. He expects a strong altcoin bull run to follow in the next one to two months—the phase when FOMO truly begins. He also predicts that Bitcoin’s long-standing dominance is coming to an end as altcoins gradually rise. By Q4, when the Federal Reserve begins cutting rates, Bitcoin will enter a new upward cycle, potentially climbing to between $160,000 and $240,000.
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