“Altcoins Back in Focus: ETH and DOGE Lead Market Rotation Away From Bitcoin”

Altcoins Surge as Bitcoin Stalls: Institutional Flows Signal Market Rotation

Bitcoin (BTC) hovered just below $120,000 during Monday’s Asian trading session, rising 1% on the day and 2.6% over the week. Yet, market focus has clearly shifted toward altcoins, with Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) seeing outsized gains amid broadening institutional interest.

This rotation coincides with growing momentum behind Ethereum-led narratives, real-world asset (RWA) tokenization, and supportive macro and legislative developments.

Ethereum Leads the Charge

ETH rallied 3.7% to $3,793, gaining 25% over the past week and marking its highest level since early 2022. Analysts attribute the move to renewed flows into ETH-based ETFs and treasury-linked products, along with mounting institutional attention to the tokenization of real-world assets.

“The demand is institutional and strategic,” said Eugene Cheung, Chief Commercial Officer at OSL. “Ethereum remains a key asset yet to break all-time highs this cycle, and traders are positioning accordingly.”

ETH’s recent strength also reversed the downward trend in the ETH/BTC ratio, suggesting a shift in relative performance expectations.

Altcoin Momentum Spreads

Other major altcoins mirrored Ethereum’s rally:

• XRP climbed 4.1% to $3.55
• SOL surged 6.6% to $189
• ADA and BNB added over 3%
• DOGE jumped 9.6% to $0.2774, now up more than 33% over the week — its strongest weekly performance in more than a year

“Altcoins are attracting capital as Bitcoin enters a phase of consolidation,” noted Enmanuel Cardozo, analyst at Brickken. “We’re seeing early signs of a Q3 altcoin cycle emerging.”

Bitcoin’s market dominance has fallen from 66% in June to 61.75%, according to TradingView — a clear indicator of capital rotation.

RWA and Legislative Tailwinds

Growing enthusiasm for RWA tokenization is also fueling altcoin momentum. With over $24 billion in tokenized assets — including real estate, Treasuries, and private credit — the sector is increasingly drawing interest from firms like BlackRock and JPMorgan.

Meanwhile, the GENIUS Act, aimed at establishing a regulatory framework for stablecoins and digital asset taxation, is still progressing in the U.S. Congress despite a recent procedural setback.

“Tokenized real-world assets are becoming an essential theme in DeFi,” said Cardozo.

What’s Next

While some hesitate to label this phase a full “altseason,” traders are clearly reallocating toward high-beta tokens and Ethereum-aligned assets.

“Traditional players are already heavily positioned in Bitcoin,” said Augustine Fan of SignalPlus. “Now we’re seeing risk-on sentiment extend to altcoins, especially those with institutional narratives.”

If BTC continues to consolidate beneath $120K, analysts expect the next leg of the rally may be led by Ethereum and RWA-linked altcoins.