Key Insights
- •Zcash’s 200% explosive performance since last month and this week’s 100% triggered ‘Uptober’ excitement.
- •An analyst explained a Zcash price rally has historically signalled the start of the altcoin season.
- •The TOTAL3 chart, tracking all cryptocurrencies except Bitcoin and Ethereum, hit a record high of $1.18 trillion.
Zcash’s explosive performance in recent weeks has stirred ‘Uptober’ excitement after it surged 202%, followed by another 100% rally that happened this week.
One analyst suggested that such sharp gains in privacy coins like Zcash and other smaller altcoins often mark the later stages of a Bitcoin rally and could pave the way for the next altcoin season.
The latest rally lifted ZEC to its highest level since April 2022, although it still trades nearly 96% below its all‑time high of $3,193 set in 2016.
Zcash Price Rally Signals Altcoin Season
According to CryptoQuant’s on‑chain analyst JA_Martuun, the recent surge in Zcash (ZEC) could be sending an early warning signal for Bitcoin.
In a post shared on X, the analyst cautioned that “Zcash pumps are usually a red flag for Bitcoin,” noting that similar altcoin spikes have historically occurred near local or cycle tops.
The chart shared by CryptoQuant highlights several previous instances where sharp increases in ZEC’s price coincided with major peaks in Bitcoin’s market cycle.
Each red‑shaded zone on the chart marks a period when Zcash rallied aggressively, often followed by a correction in Bitcoin’s price. This pattern suggests that strong moves in ZEC may reflect speculative excess or waning momentum in the broader market.
At present, Zcash price has climbed dramatically by over 200% over the last one month and 100% this week, reviving memories of those earlier warning phases.
While not a definitive predictor, the correlation between ZEC rallies and Bitcoin tops has become difficult to ignore.
TOTAL3 Chart: All Altcoins Market Cap (Excluding BTC & ETH) Hit New All‑Time High
Meanwhile, market data shows that momentum is shifting strongly toward altcoins. The TOTAL3 chart, which tracks the market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum, reached a new all‑time high of $1.18 trillion.
Analysts said this milestone signals that capital is once again pouring into the broader altcoin market.
At the same time, USDT’s dominance dropped from 4.74% to 4.18%, reflecting billions of dollars moving out of stablecoins and into higher‑risk assets. Observers noted that this trend is not limited to retail traders chasing short‑term gains.
On‑chain data from CryptoQuant indicated that more than $4 billion in stablecoins have been withdrawn from exchanges since late September. A move often seen before large allocations into DeFi projects, Layer‑1 networks, and AI‑focused tokens.
Adding to this, the decline in stablecoin dominance suggests a growing appetite for risk across the market.
Bitcoin’s market dominance has slipped to 57%, down from 62% just a month ago, while the Altcoin Season Index has climbed to 69.
Analysts explained that a reading above 75 typically marks the start of a full‑scale altseason, and current trends suggest the market may be heading in that direction.
It is also worth noting that the market capitalization for stablecoins has climbed 5.7% this month, reaching $302 billion. This uptick points to expanding liquidity across the crypto market, though it does not yet reflect the kind of speculative frenzy seen at cycle peaks.
Experts described this as a “sweet spot” for the market, as a phase where liquidity grows gradually, supporting a more sustainable rally.
According to them, steady inflows like these tend to build lasting momentum rather than fueling short‑lived surges that quickly collapse.