The 2026 Rotation Is Already Starting — Most Traders Can’t See It Yet
Altcoin rotations don’t begin with fireworks.
They begin with subtle shifts in liquidity that most retail traders ignore.
Right now, those signals have already started.
1. BTC dominance is flattening
After a year of leading the market, BTC’s dominance is losing momentum. This always marks the first phase before liquidity begins rotating outward.
2. ETH is quietly strengthening on the BTC pair
The ETH/BTC pair is the earliest leading indicator of alt seasons.
When ETH starts outperforming BTC, liquidity prepares to flow into the rest of the market.
3. L1 ecosystems are absorbing new liquidity
Solana, Avalanche, Sui, Injective, and other L1s are showing early trend strength.
This is exactly how 2021 and 2025 cycles began—L1s become the second stop after ETH.
4. Midcaps are building bases instead of breaking down
Projects with real fundamentals aren’t making new lows.
They’re accumulating.
This is the “coiling” phase before volatility expands.
5. Narratives are shifting before prices do
Modular infra, RWAs 2.0, gaming liquidity hubs, and ZK ecosystems are all getting early attention.
Narratives move first
Liquidity moves second
Price moves last
This is why most traders always enter late.
6. Microcaps will be the last stage
The final phase of every rotation is the small-cap blow-off. That stage is still far away.
But every rotation begins exactly where we are now.
The pattern never changes:
BTC → ETH → Top L1s → Midcaps → Small caps
Most people only notice the last two steps.
You’re early if you’re paying attention now.
The 2026 rotation isn’t coming.
It has already begun.
