The crypto market is contracting 📉, with widespread declines involving both Top 20 tokens such as Bitcoin and Ethereum, as well as smaller altcoins. Over the past seven days, some altcoins have recorded double-digit losses: Ethena -19%, as well as Bonk, Pepe Coin, while Ondo shows a drop of around -13%, to name a few.

Crypto market in contraction

In the attached chart, Chainlink stands out (recently analyzed), maintaining a +42% monthly gain. Ethereum remains in the green with +12%, while Bitcoin loses -3.60% and Ripple -4.25%.

Altseason delayed?
As for the so-called “AltSeason,” the discussion must be postponed. Every time talk of a new AltSeason arises, the market promptly enters contraction phases.

Altcoins and BTC vs ETH comparison

This decline has affected the Total Market Cap, which, after last week’s record at $4.17 trillion, is now down about 9%, losing over $400 billion.
The altcoin Total Market Cap (TOTAL3), excluding ETH and BTC, also records a -9.26% loss. In a direct comparison, Bitcoin shows an -8.26% contraction, while Ethereum’s drop is sharper at -13%.

Altseason paused, but some altcoins run
Looking at the Total3 and Total Market Cap charts, it is evident that Total3 has not surpassed its historical peak of $1.16 trillion reached in December, unlike Bitcoin and Ethereum which have hit new market cap highs.
This means the much-anticipated Altseason is not happening, has not started, and remains in perpetual wait 🚫. However, some altcoins are significantly outperforming the rest of the market. This happened in 2024 and is repeating in 2025.
A clear example is Hyperliquid (HYPE) which, until a year ago, was almost unknown. In 2025, it has become the top-performing large-cap token, posting a +58% increase. Today, $HYPE boasts a market cap of $13.95 billion, ranking #12 on CoinMarketCap.

Market contraction favors BTC dominance
The ongoing contraction phase seems more favorable to Bitcoin. However, in the dominance analysis on August 10, the importance of breaking down the 60% level was highlighted. Losing this level could bring a sharper BTC decline compared to ETH, with BTC dominance potentially falling toward 57%.

ETH/BTC ratio and resistance breakout

Such confirmation will require the ETH/BTC ratio to break above the static resistance at 0.03440 BTC, as noted on August 12.
From the chart, ETH/BTC stalled right at this level and is now retracing. Therefore, the breakout of this resistance is crucial.
Remember: this does not necessarily mean both prices will rise, but in terms of relative strength, ETH could fall less than BTC. 🔑