Bitcoin (CRYPTO: BTC) is holding its ground while activity shifts toward networks showing real usage. XRP’s (CRYPTO: XRP) ledger just hit a 180-day transaction high, Solana (CRYPTO: SOL) is quietly outperforming on throughput and returns near $145, and capital appears to be rotating to altcoins rather than rushing.
This setup has reopened the altcoin season debate, though the signals look more selective than past blow-off cycles. Instead of broad speculation, the market is rewarding function, speed, and settlement demand. Whether these early moves sustain or fade like past January surges depends on whether activity holds and Bitcoin dominance breaks down.
XRP On-Chain Activity Hits 180-Day High
XRP Ledger activity quietly strengthened while price stays range-bound. On January 13, the network processed 1.45 million transactions in a single day, marking the highest daily count in six months. The spike followed a steady upward trend that began in late 2025, coinciding with new payment corridors through Ripple’s On-Demand Liquidity platform and stablecoin integrations like RLUSD.
This gap between activity and price often appears early in crypto rotation cycles. When networks process more value without speculative excess, repricing tends to lag. Analysts tracking filtered payment data note mid-sized transfers are rising, pointing to operational demand rather than short-term noise.
XRP’s advantage lies in consistency rather than speed. Its efficiency in cross-border settlement keeps it relevant for institutional use cases that don’t depend on headline momentum. Within the broader altcoin season 2026 framework, this pattern frames XRP as infrastructure being accumulated—not an asset being chased late. ETF inflows exceeding $1.3 billion support the accumulation thesis.
Solana Outperforms Bitcoin and Ethereum Near $145
Solana pulled ahead as capital prioritizes speed and throughput over macro narratives. A price near $145 masks stronger relative performance, as network activity continues to expand while Bitcoin and Ethereum stall. Daily transactions remain elevated, driven by DeFi flows, trading activity, and applications requiring fast settlement without cost friction.
What stands out is how closely price strength tracks usage. High transaction counts, rising DEX volumes, and stablecoin movement suggest Solana is absorbing real flow, not short-lived speculation. Recent infrastructure upgrades improved reliability, helping developers stay active even as Ethereum traffic fragments across Layer 2s.
This operational consistency explains why rotation capital keeps favoring Solana during risk-on windows. While XRP vs. Solana debates often focus on price, Solana’s edge right now comes from throughput translating directly into market demand. As long as activity holds, selective alt strength remains supported rather than stretched.
Bitcoin Dominance Holds Steady at 59%: What This Means for Altcoin Season
Bitcoin dominance near 59% has shifted the market’s tone. Instead of pulling liquidity away from everything else, Bitcoin is holding its share while letting select altcoins breathe. That balance has historically allowed focused rallies to develop without forcing traders into defensive positioning.
Past cycles show flat Bitcoin dominance levels often precede crypto rotation into assets with real usage—not broad speculation. Capital spreads outward in controlled moves, rewarding networks showing growth rather than chasing narratives. The current setup mirrors those periods, with strength appearing in specific large caps instead of across the board.
From a structural perspective, stable Bitcoin dominance suggests crypto rotation rather than panic or euphoria. Bitcoin remains the anchor, but it’s no longer crowding out opportunities. If this balance holds, altcoins can continue advancing on fundamentals rather than momentum alone. For altcoin season 2026 to fully confirm, dominance would need to break below 57% and sustain lower levels.
Historical Pattern: When Usage Leads Price, Altcoins Explode Weeks Later
Altcoin rallies rarely begin on charts. They start on-chain, where rising activity shows up before prices move.
During 2017 and again in 2021, transaction spikes across major networks appeared weeks before prices reacted. XRP’s payment volumes and early high-throughput chains showed steady growth while prices drifted sideways. About three weeks later, capital rotated out of Bitcoin once dominance cooled. Liquidity followed usage, not technical patterns, and altcoins repriced sharply as conviction formed.
That sequence tends to repeat. Bitcoin stabilizes, on-chain activity builds, then markets respond once data holds long enough to feel credible. Current conditions echo that structure. XRP activity sits near long-term highs, while Solana continues to lead in throughput and daily transactions. Payment velocity, whale transfers, and DEX volumes are rising first—with prices lagging behind.
This delay matters for altcoin season 2026 timing. It reflects how capital moves cautiously, waiting for confirmation rather than chasing noise. When catalysts arrive—whether upgrades, regulatory clarity, or ETF expansion—prices often catch up quickly. If activity fades, momentum stalls, and history suggests patience rewards those watching usage, not intraday swings.
Is 2026 Altcoin Season Confirmed or Just a January Head Fake?
Markets are flashing mixed signals on altcoin season 2026. XRP’s on-chain activity is elevated, Solana continues showing relative strength with gains, and the Altcoin Season Index climbed from 37 in late December to above 50 in early January. At the same time, Bitcoin dominance remains steady rather than breaking down, keeping the broader market in a holding pattern.
Calling altcoin season 2026 confirmed still feels premature. What the data shows looks more like early crypto rotation than full participation. Capital is moving selectively into XRP and Solana with clear usage trends, while leverage stays muted and open interest continues to cool. That behavior fits the early phase of a cycle, not the euphoric middle.
For confirmation, three conditions need to align to enable January’s probe to develop into something larger: Bitcoin dominance breaking below 57%, the Altcoin Index sustaining above 75, and total altcoin market capitalization expanding consistently. Until those triggers fire, this phase resembles a cautious probe rather than a broad breakout.
