Altcoin markets are experiencing a significant rally, with Ethereum (ETH) leading the charge by nearly doubling in price over the past three months. According to market technician Daan Crypto Trades, 78% of the top 50 altcoins have outperformed Bitcoin (BTC) during this period, marking what many are calling a genuine altcoin season.
The total crypto market capitalization has climbed to $4.1 trillion as of September 12, with altcoin valuations approaching their 2021 highs at $1.7 trillion. Ethereum has been the standout performer, trading above $4,500 with a market cap of $500 billion. Other major altcoins like Avalanche (AVAX) and Solana (SOL) have also posted impressive gains, with AVAX jumping 17% in a week and SOL advancing 8% while drawing attention to its growing network liquidity.
However, analysts note that this rally has so far been concentrated in large-cap assets and hasn't yet spread broadly to mid and small-cap tokens. The Altcoin Season Index, which measures whether 75% of top 100 non-stablecoin tokens outperform Bitcoin over 90 days, jumped from 39 to 58 in August, indicating growing momentum.
Market outlook remains cautiously optimistic as traders watch the U.S. Federal Reserve's September 17 rate decision. Easing inflation has raised expectations for possible rate cuts, which could extend risk-taking into altcoins. Yet analysts warn that thin liquidity could leave prices vulnerable to abrupt corrections despite the steady upward drift.