Coinbase Predicts Altcoin Season Could Start in September

The crypto market could be entering a true altcoin season. Since early July, altcoins have surged over 50%, reaching a total market cap of $1.4 trillion. According to Coinbase research, Bitcoin dominance has dropped from 65% to 59%, an early sign of capital rotation toward altcoins. The Altcoin Season Index stands at 53, still below the 75 threshold for a full season.

Coinbase believes expected U.S. rate cuts in September or October could boost appetite for risk assets, with $7.2 trillion in cash reserves potentially flowing into crypto. Ethereum (ETH) is at the center of this shift, with large investors now holding nearly 3 million ETH. Liquid staking projects like Lido DAO (LDO) are also benefiting, with LDO up nearly 60% this month.

The analysis suggests that September could bring heightened volatility and major profit opportunities, marking the start of a new bullish phase for altcoins.