Altcoin Breakout Looms as Stablecoin Liquidity Nears $250 Billion

• BTC and stablecoins dominate 73.5%, hinting at altcoin accumulation.
• Weekly stablecoin issuance rises, fueling altcoin breakout potential.
  

The crypto market is entering a crucial phase as stablecoin liquidity climbs. According to data from Alphractal, the total market capitalization of stablecoins is approaching $250 billion, which now makes up 7.5% of the entire crypto market.

Tether (USDT) leads the space with 66.2% dominance. Over the past 90 days, billions in stablecoins have been issued weekly, signaling strong capital inflows.

Analyst João Wedson noted that the combined dominance of Bitcoin and stablecoins has reached 73.5%. He explained that this level historically aligns with market accumulation phases before significant altcoin surges. 

Wedson pointed out that rising stablecoin liquidity often precedes capital rotation into undervalued assets. He also emphasized the presence of profound investor disbelief, which he interpreted as a contrarian indicator.

Altcoin Capitalization Holds Steady

The total crypto market cap now stands at approximately $3.21 trillion. Out of this, $1.12 trillion belongs to assets excluding Bitcoin. Altcoins alone account for $232.13 billion, maintaining stability amid ongoing volatility. Market activity saw a sharp rally around November 2024 and experienced fluctuations into early 2025.

Despite Bitcoin’s continued dominance, altcoins’ steady performance reflects a gradual diversification in investor interest. Analysts suggest this pattern mirrors previous cycles, where stablecoin inflows and Bitcoin consolidation eventually led to altcoin appreciation.

The resilience of the altcoin market amid bearish sentiment supports forecasts of a coming breakout.

What Do We Expect?

Analysts, including Wedson, believe that as Bitcoin stabilizes, liquidity will rotate toward undervalued altcoins. He stated that the current setup resembles past altcoin seasons, marked by a lull before sharp price movements. The market shows signs of readiness for a parabolic move as liquidity builds up.

The data suggests the altcoin market may be on the verge of a strong uptrend. Improving macro liquidity conditions, coupled with a high share of idle capital in stablecoins, create a setup that has historically preceded sharp rallies in altcoins..

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.