During the recent market rally, altcoins accounted for nearly 65% of the volumes seen on the Binance exchange. This is their highest level in two years. Their cumulative valuation has also increased by around $135 billion. This data shows that traders have increased their exposure to assets other than bitcoin and Ether. However, they are not enough to confirm an altseason, because the majority of major cryptos have not yet outperformed BTC over three months.
In brief
- Altcoins captured up to 65% of volumes on Binance.
- Bitcoin and ether accounted for 21% and 13.6%, respectively.
- Their cumulative capitalization increased by approximately $135 billion.
- The Altcoin Season Index remained at 37, far from the confirmation threshold set at 75.
Altcoins capture 65% of volumes traded on Binance
The share of altcoins in Binance volumes reached 65% at the peak of the recent market rally. This capitalization constitutes their highest level since 2024, according to an analysis released by CryptoQuant on August 25.
At the same time, bitcoin only represented 21% of transactions carried out on the exchange platform. Ether’s share stood at 13.6%. The other cryptos therefore concentrated almost three times more activity than the two main assets on the market combined.
This development appeared after a strong increase in bitcoin. At the same time, bitcoin rose about 30%. The first crypto rebounded above $81,000 on August 25. This initial explosion in BTC captured more liquidity and investors before this activity expanded to other riskier assets.
CryptoQuant analysts explain:
After a long period of low volatility and moderate volumes, it is altcoins that have captured investors’ attention and capital, which could signal a broader resurgence in risk appetite across the broader market.
The peak of 65% must however be placed within its scope. It concerns volumes measured on Binance, and not all centralized platforms, decentralized exchanges and derivatives markets. Binance is an important indicator due to its size, but its customer base and the composition of listed assets can influence trading distribution.
The dominance of volumes does not correspond to that of the market either. It measures the share of the amount exchanged during a specific period. A crypto can therefore generate high volume due to rapid round trips, automated trading, or high volatility, without attracting an equivalent amount of sustainable capital.
Altcoin capitalization gains $135 billion
The cumulative capitalization of altcoins increased by around $135 billion during the same bullish phase. This activity, which is part of a global recovery, has helped add around $500 billion to the entire crypto market.
During this third week of August, the valuation of the ecosystem reached nearly $2,740 billion. This is its highest level since May. Bitcoin therefore ends this period with a weekly jump of 22%, while many altcoins recorded developments of more than 20%.
Zcash notably gained nearly 70% in one week and briefly exceeded $873. XRP rallied 51%, while Hyperliquid’s HYPE hit a record high of $82.43, according to market review. This performance contributed to the increase in the cumulative value of altcoins.
The $135 billion, however, does not represent $135 billion in new investments. The capitalization of a crypto corresponds to its price multiplied by the number of tokens in circulation. An increase applied to a limited fraction of the tokens exchanged can therefore increase the theoretical valuation of the entire supply.
Volume measures, for its part, the total value of transactions carried out. The same capital can be counted several times when a trader buys and then sells an asset. Neither the increase in volumes nor that of capitalization makes it possible to precisely identify net inflows of money.
The expression “rotation from bitcoin” should also be used with caution. The decline in BTC’s share of volumes shows that altcoins have caused more trading. It does not prove that bitcoin holders directly sold their assets to buy alternative tokens. New stablecoin deposits or the use of leverage can also fuel this activity.
Two clues remain far from confirming an altseason
Despite the shift in volumes, relative performance indicators do not yet signal an altseason. L’Altcoin Season Index from BlockchainCenter posted a score of 37 on August 26.
This index examines the performance of the top 50 eligible cryptos over 90 days. It only recognizes an altseason when 75% of them do better than bitcoin. Stablecoins and tokens backed by other assets are excluded from the calculation.
The indicator of CoinMarketCap also had a score of 37. Its methodology, however, covers the 100 main cryptos. The concordance of the two results shows that the recent increase remains too short or too concentrated to constitute generalized outperformance against BTC.
The signal appears all the more fragile as the dominance of bitcoin in total capitalization remained close to 59.7%. BTC therefore retained a higher share than all other categories taken separately, despite the decrease in its presence in Binance volumes.
The situation nevertheless marks a notable change compared to the month of June. At that time, CryptoQuant CEO Ki Young Ju believed that the traditional rotation from bitcoin to altcoins had almost disappeared. The volumes of the pairs between BTC and altcoins then fell to their lowest level since 2021.
The current peak shows that speculative interest can still quickly return to alternative assets. To confirm a lasting trend, this activity will have to be maintained beyond a few sessions, extend to several platforms and be accompanied by outperformance of a majority of altcoins over 90 days. For now, the data signals a rotation of trades, but not yet a true altseason.
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