Cryptocurrency traders are rotating capital into altcoins, driving Binance's altcoin inflows to an 18-month high of over 45,000 transactions in the past week, according to CryptoQuant data analyzed by contributor Maartunn. This surge—the highest since late 2024—signals renewed trader interest as Bitcoin's dominance cools after its parabolic rally above $123,000.
The total altcoin market capitalization has risen 23% over the past month. However, conflicting indicators persist: the Altcoin Season Index sits at 36 (well below the 75 threshold for a confirmed "altseason"), and social engagement has retreated to April levels. Despite this, major altcoins show modest gains: Ethereum (ETH) and XRP (XRP) are up ~2%, while Solana (SOL) and Sui (SUI) gained ~3% in 24 hours. Tokens like POL, PENGU, and CAKE surged 6-8%.
Analysts debate the trend's sustainability. Some warn that exchange inflows often precede sell pressure, citing fragmented retail attention and altcoin oversupply. Others, like Merlijn The Trader, anticipate an imminent "violent breakout," drawing parallels to 2019-2020 cycles. Lucie, another analyst, notes accumulating momentum in ETH, meme tokens, and DeFi, suggesting September could catalyze a broader rally.