This milestone, noted by analysts, reflects a continued shift in focus away from Bitcoin (BTC) toward altcoins, with significant growth observed over the past few months.

According to Burakkesmeci, a contributor to CryptoQuant, the altcoin trading volume on Binance has grown by 11% since May 2024, when it stood at 50.8%. “Retail interest in altcoins is steadily rising, and this momentum could pave the way for a potential bull market in 2025,” he said in his analysis. Binance, as the largest crypto exchange by trading volume, has seen a rise in altcoin pair trading, which now accounts for over 77% of its total volume as of January 2025.

A Shift Toward Altcoins

The increased dominance of altcoin trading on Binance reflects broader changes in the cryptocurrency landscape. Investors are diversifying their portfolios, seeking opportunities beyond Bitcoin and Ethereum (ETH). While Bitcoin’s price movements are still closely watched, altcoins have become an area of growing interest, driven by both retail traders and institutional investors.

Chart showcasing major altcoin trade volume dominance on Binance. Source: Burakkesmeci/Cryptoquant

Burakkesmeci emphasized that the consistent increase in altcoin trading volume is a clear sign of confidence in altcoins, setting the stage for potential growth in 2025. “With retail participation on the rise, altcoins could continue to gain momentum,” he noted. This view is shared by several market participants, with many foreseeing the altcoin market to be ripe for expansion when increasing interest in newer digital assets translates into capitalization.

Ethereum’s Role in the Potential Bull Market

Ethereum, the second most valuable cryptocurrency by market capitalization, has been at the forefront of this movement. Traders are keeping a close eye on the price action of ETH, and some analysts have targets with significant upside. “If Ethereum breaks resistance levels, we could see it go from $4,000 to $8,000,” said Mister Crypto, a popular crypto trader. This could spur a broader altcoin rally because history has also shown that, in terms of price action, Ethereum typically leads the pack.

Ethereum (ETH) price chart. Source:Ethereum Liquid Index (ELX) via Brave New Coin

Ethereum price is approximately $3,279, having shed off nearly 16% in the past month. However, the possibility of it posting significant gains is one of the factors that continues to fan optimism in the altcoin market. With Ethereum approaching key resistance levels, traders are now speculating that a price breakout could catalyze a wider altcoin bull market.

Bitcoin Dominance and Altcoin Season

Despite the growing altcoin dominance, some metrics, like CoinMarketCap’s Altcoin Season Index, are still showing a preference for Bitcoin. The index currently scores altcoins at 46, indicating a slight lean towards “Bitcoin Season,” where Bitcoin dominates the market’s attention. Bitcoin’s dominance in the overall cryptocurrency market stands at 57.74%, having increased by 2.4% over the last month.

The Altcoin Season Index has dropped 18 points since December 9. Source: CoinMarketCap

However, many analysts believe that a drop in Bitcoin dominance is often a precursor to an altcoin season. As more capital flows into altcoins, Bitcoin dominance typically declines, signaling that a shift towards alternative cryptocurrencies is underway.

A New Era for Altcoins: What to Expect in 2025

Although the growing dominance of altcoins in Binance shows promise, according to some analysts, the upcoming season for altcoins may not be quite like the others. Ki Young Ju, CryptoQuant CEO points out that, in fact, among the altcoins, only selected projects with strong use cases and narratives will dominate. “This market cycle will differ from those of before because the rotation of capital from Bitcoin into altcoins might not be what drives the market this time around,” Ju explained.

Bitwise Invest’s CEO, Hunter Horsley, also suggested there is growing enthusiasm for crypto in the coming year: “2025 is shaping up to be a breakthrough year for Bitcoin and the broader crypto market,” Horsley said, optimistic about what’s in store for the next several months.