The latest data from CryptoQuant shows that altcoin inflows to Binance — the world's largest exchange by trading volume — have reached their highest level in months.
Amid intense trading activity, the altcoin season index remains at just 35. However, analysts believe that the altcoin season may be about to start.
Altcoin skyrockets on Binance: What does it mean?
Maartunn, CryptoQuant's community analyst, recently highlighted this change in a post. He noted that the amount of altcoin sent to exchanges has remained stable over the past few months, with very little volatility. This has occurred while Bitcoin prices have been sideways.
However, he noted that recently, the amount sent has surged, with the number of transactions in 7 days exceeding 45,000 — the highest since late 2024.
"This surge may indicate that many traders are preparing to act," Maartunn commented.
He also noted that altcoin activity increased after Bitcoin's recent price surge, surpassing $112,000. According to him, this price volatility has attracted more attention to altcoins. However, it is important to note that inflows to exchanges are often a sign of selling pressure rather than buying demand.
"When the amount sent increases like this, it usually means that users are transferring money to exchanges for trading rather than holding. Whether this leads to further buying (in the case of sending USDT/USDC) or selling (converting altcoins to stablecoins) depends on the next market developments, but it is clear that activity is increasing."
Moreover, data from CryptoQuant shows that the number of addresses and total transactions related to altcoin inflows to exchanges has also increased significantly. Thus, the trading level in the altcoin market is at a higher level.
However, despite the increased activity, the Altcoin Season Index has not yet confirmed the official return of the altcoin season. This index tracks the performance of 50 cryptocurrencies (excluding stablecoins and wrapped tokens) compared to Bitcoin over a 90-day period and only defines 'altcoin season' when 75% of those coins outperform Bitcoin.
Current metrics have not yet reached this threshold, indicating that Bitcoin still dominates market sentiment.
Furthermore, a trader and analyst believes that the altcoin season has ended due to excessive altcoin supply, insufficient liquidity, and the attention of retail investors being scattered.
"The altcoin season is dead, and it will not return. The previous altcoin seasons were when 50 projects surged 20–100 times. Now, only 5 'cult' coins are rising sharply, while the remaining 5,000 coins are quietly plummeting," he remarked.
According to him, instead of a broad-based altcoin growth, it is currently a 'story season,' where only the projects with the most compelling stories can break through.
Nevertheless, some other analysts remain optimistic that the altcoin season is approaching.
"The altcoin season is accumulating strength. We have returned to the zone that previously created 5x–20x increases in 2019 and 2020. BTC's dominance rate is peaking. Altcoins are compressing before a strong breakout. When this spring releases... the game begins," Merlijn The Trader wrote.
Another analyst pointed out that although it is not yet the altcoin season, the necessary conditions are gradually forming. She believes that September could be a pivotal moment for a breakout.
"Altcoin momentum: Slowly building on ETH, meme tokens, and DeFi. The accumulation phase may have already begun, consistent with the classic pattern of August," Lucie commented.
The altcoin market reflects the performance of small-cap stocks in the U.S. — both are seen as high-risk, high-reward investments. With small businesses becoming increasingly optimistic, the potential for growth remains, suggesting that altcoins still have room to expand.