Joao Wedson, CEO of crypto analysis firm Alphractal, and recent reports highlight a significant outflow of various altcoins from the Binance exchange, signaling strong accumulation by investors. According to Wedson, this trend is an indicator of a potential upcoming altcoin season, with investors moving tokens off Binance to personal wallets to hold for the long term. Key altcoins showing high exit rates include ENJ, SLP, FET, AMP, ETH, CRV, BNT, 1INCH, GHST, GTC, YGG, LINK, ANKR, ALICE, MKR, SNX, ZRX, DODO, and OGN.
Additional analysis points to sustained withdrawals of ETH, LINK, and MKR from Binance, further suggesting smart investors are positioning ahead of a shift from Bitcoin dominance to altcoins. Despite Bitcoin maintaining dominance above 63%, altcoins have outperformed Bitcoin in recent price gains, with some tokens like IP and FORM showing strong returns. This divergence between Bitcoin dominance and altcoin accumulation hints at early-stage market rotation.
The Altcoin Season Index remains low, indicating a Bitcoin season currently, but its recent upward movement, plus notable accumulation trends, may suggest an imminent breakout favoring altcoins. Investors are advised to monitor wallet flows and accumulation signals rather than solely relying on dominance metrics, as these combined factors underscore a latent momentum building in altcoins.
