With Bitcoin reaching a new all-time high of $112,000, analysts are observing a shift in capital toward altcoins. According to Santiment, BTC holders are increasingly moving into riskier assets, evidenced by a spike in new wallets for Wrapped Ethereum (WETH), Gatechain Token (GT), and Maker (MKR).
Santiment data shows that WETH ranked 26th in the number of new addresses, GT came in at 39th, and MKR at 77th. This may indicate a transfer of market liquidity into altcoins following Bitcoin’s bullish phase.
Analysts Debate Whether Altseason Has Begun or If It’s Just a Warm-Up
Binance KOL known as CryptoBlade stated that while new wallet creation is a good sign, hype alone does not guarantee sustainable demand. In his view, a true altseason requires "something more than just buzz."
Meanwhile, other market participants are more optimistic. Industry veteran and Master Ventures founder Kyle Chassé said the "upcoming altseason will be epic." However, he noted that the current situation differs from previous cycles, as there are too many tokens in circulation and not all will perform well.
According to data from CoinGecko and CoinMarketCap, over 16 million crypto tokens exist globally, many of which are low-quality memecoins — primarily on Solana and Base.
“It Will Be Bigger Than 2021”
A trader known as Merlijn The Trader stated that the charts "scream the start of altseason." He expects the scale of growth to surpass that of 2021 and emphasized that "institutionals are already chasing alts with real utility."
Another trader, Sensei, pointed to a key indicator — the decline in Bitcoin dominance. According to CoinMarketCap, BTC's market share is at 63.1%. On May 7, it peaked at 64.34% — the highest since January 2021 — but has since begun to drop. Historically, declining BTC dominance correlates with rising interest in altcoins.
