Institutional demand for Ethereum can start Altseeson

Current market conditions indicate a possible rapid start of the full -scale altcoin season. According to Coinbase Institutional, it can start in September.

Rotation of capital and market signals Bitcoin dominance index decreased from 65% in May to 59% in August. Analysts consider this as an early signal of capital transfer to altcoin.

Experts noted a certain gap in the indicators. The COINMARKETCAP altcoin season index remains close to 40 points in threshold 75. At the same time, the total capitalization of altcoins has increased by 50% since August 12 and reached $ 1.4 trillion.

Source: Coinbase Institute.

This difference is explained by the increased demand for Ethereum by large investors.

The role of Fed and retail investors Experts disagree with the expected in September a decrease in rates Fed It will be a local peak for cryptoring. They believe that the softening of monetary policy, on the contrary, is able to attract retail players.

The accounts of money market funds in the United States keeps a record amount – more than $ 7 trillion. Reducing the Fed rates will reduce their attractiveness, which can stimulate the flow of part of capital into more risky assets, including digital ones.

Source: Coinbase Institute.

Analysts added that the liquidity to cryptocurrency began to recover after a six -month downturn. This is facilitated by the increase in the release of steiblcoins on the background of greater regulatory certainty.

Source: Coinbase Institute.

The growing interest of institutional investors in the second -capitalization of cryptocurrency has become a key market driver. Demand is supported by corporate treasures (DATS) and narratives around steiblcoins and RWA.

For example, Bitmine Immersion Technologies purchased 1.15 million ETH. Currently, the largest corporate owners control about 2.95 million ETH – more than 2% of the total proposal.

Source: Coinbase Institute.

Against the backdrop of the price rise of Ethereum rose and associated with it tokens with high beamsuch as arb, ena, ldo and op. The largest increase was shown by LDO, which added 58% per month.

Lido’s growth was facilitated Sec. Representatives of the regulator reported that liquid stinging tokens are not securities if the services perform mainly technical function and transfer the remuneration completely. Analysts emphasized that this is only the current position of the department that could change.

As of the time of ALTCOIN SEASON INDEX, 45 out of 100.

Source: CoinmarketCap.

Earlier, Bitfinex analysts said the weak recovery of altcoins after the correction of bitcoin has questioned the continuation of the Altseseon.

The gun