A broad rally in alternative cryptocurrencies is eroding Bitcoin’s market share and reigniting debate over whether a fresh “alt-season” is under way. Bitcoin’s dominance—the share of digital-asset market value it commands—slipped to 62.18%, its lowest level in more than a month, as capital rotated into smaller tokens. The Altcoin Season Index, a gauge that rises when the majority of the top 50 digital assets outperform Bitcoin, climbed to 39 out of 100, its highest reading since February. Over the past seven days XRP has gained 24.9% and Ether 20.9%, while niche coin PENGU has surged 567%, according to exchange-data aggregators. Flows into spot Ether exchange-traded funds have accelerated, with assets rising 16% in the past 30 days to $13.22 billion, contrasting with a slowdown in Bitcoin ETF inflows. Market strategists say that shift, together with improving liquidity across non-stablecoin assets, is encouraging investors to add risk further down the market-cap spectrum. Skeptics note the index remains well below the 75 threshold that historically marks a full-blown altcoin cycle and caution that previous rallies have fizzled. For now, traders are watching whether Bitcoin dominance continues to retreat, a move that could confirm a more durable rotation into alternative tokens.