Ethereum’s market dominance is approaching all-time lows, despite its active addresses recently doubling. This environment is a fertile ground for new opportunity to make big profits like those seen in other cryptocurrencies. This new data combined with emerging market trends shows that investor priorities may soon change. This change might feel very much like the altcoin boom of early 2021.

As per a Bloomberg report published on April 20th, 2025, Ethereum is in the midst of a dominance low. Etherscan data from just yesterday shows an amazing jump in active Ethereum addresses. They have exploded, up 10% and over half a million in the last 24 hours alone. This sharp divergence between on-chain activity and market dominance indicates that investors are starting to diversify their portfolios into other crypto assets.

Looking back at history, every single time Ethereum dominance has dropped like this, altcoins have rallied big-time. In January 2021, for instance, CoinTelegraph reported a nearly 75% decrease. This decline sparked some amazing gains of more than 300% for altcoins such as Polkadot (DOT) and Chainlink (LINK). The market is left vulnerable to sudden price fluctuations as Ethereum continues to lose its chokehold.

The broader Ethereum ecosystem remains vibrant. Yet, other projects are capturing attention. Solana and Cardano volumes exploded during the recent Ethereum dominance dip. Developers can monitor GitHub for insights into the development activity of these projects.

Online communities — particularly of the raucous variety — have further been driving interest in specific altcoins. Avalanche (AVAX) and Polygon (MATIC) are recent darlings discussed on r/CryptoCurrency. These might be just luck early indicators of positive protests to come and counter-rallies.

It's important to exercise caution. A decrease in Ethereum’s dominance can have devastating effects on the overall market, altcoins included. Bitcoin can still indicate when a big correction is coming, dragging the whole market with it.

Savvy investors can keep a close eye on social media platforms, including Twitter and Reddit, to spot the first inklings of new altcoin rallies. Monitoring development activity and the overall mood of the developer community can help you get ahead of these kinds of risks.