The long-hyped altcoin season had recently gone quiet. With several major assets pulling back and sentiment fading, the crypto market’s focus drifted back to Bitcoin. But this may be shifting again, as fresh signs of activity suggest that altcoins are back in play.
Summary
- Binance just saw its highest altcoin inflows in 18 months, with more than 45,000 transactions recorded over the past week.
- The total altcoin market cap has jumped 23% in the last month, pointing to renewed momentum across the sector.
- Despite the bullish signals, social sentiment and the altcoin season index are telling a different story.
- Major altcoins like ETH, SOL, XRP, and SUI have posted modest gains over the past 24 hours.
In an August 6 analysis, CryptoQuant contributor Maartum highlighted a resurgence of altcoin traffic on crypto exchanges. Deposits to Binance have climbed sharply over the past week, with the 7-day transaction count topping 45,000. This marks the highest level since late 2024, pointing to renewed trader interest in the asset class.
The analyst noted that when investors move assets onto exchanges like this, it signals they’re gearing up to trade. For months, these inflows stayed flat, particularly as Bitcoin (BTC) held strong dominance in its parabolic rally above $123,000.
Historically, the shift to altcoins has often followed a strong Bitcoin run. Once the market giant cools, profits rotate into smaller caps. If that pattern is playing out again, this spike in exchange deposits could be the first real sign of the altseason.
While the trend isn’t as visible across other exchanges yet, Binance activity is worth watching. As the largest crypto exchange by volume and a central hub for trading, past spikes in Binance altcoin inflows have often been used to gauge market shifts.
Meanwhile, the total altcoin market capitalization has climbed 23% the past month, adding weight to the bullish sentiment. But despite the signals, the broader market still feels sluggish.
Altcoin Season Index lags
According to CoinMarketCap data, the Altcoin season Index at the time of writing is at 36, a draw down from its peak above 55 last month. The index typically needs to hit or cross above 75 to signal a confirmed altseason, and current figures suggest the market is not there yet.
Social sentiment also tells a similar story. Santiment data reveals that engagement around altcoins has cooled, with volume and dominance both sliding back to April levels after spiking in July.
This suggests that altcoins are struggling to sustain rotation and attention from Bitcoin, which still commands the dominant share of the overall market at its current 60.7%.
Still, some assets are already showing signs of life.
ETH, SOL, gain as markets flip green
After several days in the red, a number of altcoins have posted modest gains over the past 24 hours. Ethereum (ETH) and XRP (XRP) are up around 2%, while others like Solana (SOL) and SUI (SUI) are pushing higher with 3% gains, according to the crypto.news price page.
POL (POL), PENGU (PENGU), and CAKE (CAKE) are some of the day’s biggest gainers, clocking gains between 6% and 8%. Others like Stellar (XLM), ALGO (ALGO), and CRONOS (CRO) are not left behind, up roughly 4%, among others.
While these numbers aren’t enough to call it altcoin season yet, momentum is building. Whether this holds and turns into a full-blown rally remains to be seen.
