By the third week of August, several altcoins experienced a sharp decline in exchange reserves. This trend reflects growing demand for accumulation and holding outside of exchanges. The shift is particularly notable as the so-called altcoin season becomes increasingly selective.
Which tokens are seeing this surge in accumulation, and what factors are driving investor optimism?
1. Ethena (ENA)
Data from Santiment shows that Ethena (ENA) exchange reserves dropped from 1.3 billion to 1.15 billion during the third week of August. In other words, 150 million ENA left centralized exchanges.
This occurred while ENA's price rose by 30% in August, climbing from $0.51 to $0.65.
The decline in reserves coincided with the announcement from the Ethena Foundation of a $260 million buyback program. The plan allocates about $5 million daily to repurchase ENA from the market.
Tokenomist estimates that buybacks could remove 3.48% of the circulating supply. This absorption of selling pressure boosts long-term investor confidence.
Additionally, Ethena surpassed key milestones in August. Revenues exceeded $500 million, while USDe supplies reached a record level of 11.7 billion.
Together, these drivers propelled ENA accumulation and a decline in exchange reserves.
2. BIO Protocol (BIO)
The BIO Protocol, a leading project in the decentralized science (DeSci) sector, exhibited exceptional performance in August with gains exceeding 265%.
Alongside rising prices, exchange reserves sharply decreased. From early August until now, reserves dropped from 380 million to 294 million BIO — a decrease of over 22%.
The third week of August witnessed the most dramatic movement. Investors withdrew 42 million BIO in just one week, pushing exchange reserves to their lowest level this year.
Several catalysts explain this wave of accumulation. BIO launched a staking program in early August that attracted over 25 million tokens. Additionally, Arthur Hayes invested one million dollars in BIO this week, reigniting market interest.
The Bio Protocol also launched a new way to reach new investors. Users are required to discuss the project on social media to earn BioXP, giving them access to the first BioAgent sales.
These factors came together to increase visibility, attract new investors, and accelerate accumulation.
3. API3
The API3 project, which focuses on oracle technology, regained investor interest in August, resulting in its price rising by more than 130%. At the same time, exchange reserves dropped to their lowest level this year.
The third week of August marked a turning point. More than 9 million API3 were withdrawn from exchanges, reducing the exchange supply to just 17.19 million.
The catalyst was Upbit's listing of API3. According to a BeInCrypto report, the token's price jumped by more than 120% immediately after the listing.
Investor focus on the oracle sector also increased due to the rise of Chainlink (LINK). LINK's strong performance last month extended to related projects. Data from Artemis confirmed that oracles were the best-performing sector in the market in August.
The increase in API3 accumulation helped maintain its price above $1.50.
These three cryptocurrencies highlight different drivers behind the selective rise of alternative cryptocurrencies in August. While a comprehensive altcoin season has yet to emerge, projects with unique catalysts — whether buyback programs, staking incentives, or exchange listings — are attracting investor and capital attention.
