Ethereum ignites the market, Solana takes over and soars: is the alt season here?

After Bitcoin strongly broke through its historical high, the attention of the crypto market is quietly shifting towards high Beta assets like Ether and Solana. Multiple on-chain data and capital flow signals indicate that a round of market led by alts may have quietly started.

Ethereum and Solana are performing strongly, with major funds accelerating their entry.

Recently, the market performance of Ethereum and Solana has been particularly eye-catching. According to market data from the Huobi HTX platform, as of now, Ethereum (ETH) has risen from 2474 USDT at the beginning of July to a high of 3857 USDT, an increase of over 55%.

This significant surge is not accidental. On-chain monitoring platform Lookonchain data shows that from July 1 to 21, 23 whales or institutions have collectively purchased 681,103 Ether, amounting to approximately $2.6 billion, indicating that ETH is becoming the core target for major capital accumulation in the market.

At the same time, the ETF market has also released positive signals. According to monitoring by Trader T, on July 21, the net inflow of ETH spot ETFs reached as high as 297 million USD, setting a record for the highest single-day inflow in history, accounting for 80% of Bitcoin ETF trading volume, and marking a continuous net inflow for 12 days, indicating a very obvious trend of capital tilt.

On the other hand, Solana, once hailed as the “Ethereum killer,” has also performed remarkably well. According to market data from the Huobi HTX platform, Solana (SOL) surged from 157.8 USDT to a high of 204.6 USDT, with an increase of 29.6%. Meanwhile, Solana’s ecosystem tokens have seen widespread gains. As of 10 AM on July 22, RAY has risen 21.01% in the last 24 hours; PENGU has increased by 20.5%; JUP has gone up by 17.14%; and AI16Z has gained 14.73% in the last 24 hours.

The strength of ETH and SOL is not just a single-point explosion of individual mainstream assets, but rather a structural signal — funds are shifting from Bitcoin to the more volatile and growth-oriented altcoin sector, and the curtain on the “altcoin season” may have officially risen.

BTC market share continues to decline, alts seasonal index strengthens

As ETH and SOL take turns rising, the market structure is also quietly changing. Bitcoin’s market dominance is gradually being eroded, providing space for funds to flow into alt assets.

Coinmarketcap shows that Bitcoin’s market share has continued to decline, currently reported at 60.1%, setting a new low since March this year. Meanwhile, the Altcoin Season Index has risen, peaking at 55 on July 21 and currently reported at 50. This index indicates that in the past 90 days, about 50 projects among the top 100 cryptocurrencies by market capitalization have outperformed Bitcoin.

Data source: CoinMarketCap

Data source: CoinMarketCap

HTX DeepThink columnist and HTX Research researcher Chloe (@ChloeTalk1) analyzes that Bitcoin’s strong breakout to a new historical high has sparked widespread expectations for the “altcoin activation season” in the market. The recent rise in Bitcoin is attributed to its safe-haven properties and the label of dollar credit assets. As Japanese government bond yields rise and the global interest rate structure may be at an inflection point, combined with a bullish bias in the options market structure, this forms an important structural basis for funds to switch from BTC to alt assets.

Market View: The real altcoin bull market may still be ahead.

QCP Capital pointed out in its latest research report that multiple indicators show that the altcoin season may have quietly begun. The altcoin season index has surpassed 50, reaching a new high since last December. The passage of the “GENIUS Act” provides a clear regulatory framework for stablecoin issuance, prompting corporate finance departments to view ETH, SOL, XRP, ADA, and others as a new generation of crypto reserve assets. Furthermore, if a staking-based Ethereum spot ETF is approved, it is expected to further drive institutions to shift their allocations from Bitcoin ETFs to ETH. Last week, ETH spot ETFs saw net inflows exceeding BTC for two consecutive days, significantly boosting the confidence of institutions such as BlackRock. The options market also shows strong bullish signals, with optimistic expectations for the fourth quarter.

Contract whale James Wynn believes that BTC could reach around $145,000 by the end of July. Subsequently, a sharp correction is expected, falling back to $110,000. In the next 1 to 2 months, a strong altcoin bull market will emerge, which is the phase when people really start to FOMO. He also predicts that Bitcoin’s dominance has lasted too long, and alts are gradually rising. By the fourth quarter, after the Federal Reserve starts to cut interest rates, Bitcoin will enter a new round of increases, possibly rising to between $160,000 and $240,000.