"The altcoin season 2026 question comes down to which asset leads the rotation. Bitcoin dominance sits near 59%, keeping a firm grip on market liquidity. Historical patterns tell us this "Bitcoin Season" phase often precedes violent rotation into altcoins. The 2016-2017 and 2020-2021 transitions followed similar setups-and with the Altcoin Season Index climbing to 57 in early January 2026, analysts see conditions forming for "Phase 2" of the current bull run."
"On-chain data adds to the story. Exchange balances for XRP fell from 4 billion to roughly 1.7 billion tokens throughout 2025-a 57% decline. This shrinking pool of available tokens, combined with steady ETF demand, creates structural tightness that hasn't fully priced in yet. Standard Chartered's Geoffrey Kendrick projects a bullish target of $8 for 2026, assuming annual ETF inflows reach $8 to $10 billion."
Bitcoin dominance near 59% retains market liquidity while historical patterns suggest such dominance often precedes sharp rotation into altcoins. The Altcoin Season Index rose to 57 in early January 2026, signaling potential transition to a second phase of the bull market. XRP shows significant ETF-driven momentum and a 57% decline in exchange balances, creating supply tightness and a projected $8 target given large ETF inflows. Ethereum benefits from Layer 2 maturation and expanding real-world asset tokenization, with major institutions deploying blockchain-based bonds and securities predominantly on its network. ETH ETFs have shown volatile early flows.
Read at 24/7 Wall St.
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