Altcoin sentiment has improved as capital flows into AI, real-world assets (RWA), and decentralized physical infrastructure (DePIN) sectors. CoinMarketCap's Altseason Index briefly reached 50, and search interest for "altseason" hit a yearly high. The total cryptocurrency market cap rebounded to approximately $2.74 trillion, though Bitcoin remains dominant, indicating a structural rotation rather than a full-scale altseason. The AI sector is drawing institutional interest due to increasing revenues and demand for computing power. RWA benefits from the expansion of on-chain U.S. Treasuries and credit products, while DePIN gains momentum from rising AI infrastructure demand. Despite improved sentiment, Bitcoin's market share remains high, and stablecoin funds have yet to significantly enter the altcoin market, suggesting a full-scale altseason is still pending.