Altcoin Exchange Deposits Soar by 160% Amid Signs of Market Fatigue

The number of altcoin exchange deposits has surged by nearly 160% over the past two weeks, reaching 78,000 transactions on September 28. This is the highest level since October 2025 and a clear indication that holders are positioning their tokens on exchanges for potential selling.

CryptoQuant notes that the number of depositing addresses has nearly tripled to 51,600 during this period, suggesting a broad-based move rather than a concentrated effort by a few wallets. This increase in exchange inflows adds pressure to the recent altcoin market momentum, which had shown improving participation after a month-long assessment of potential leaders.

The warning comes as Bitcoin shows signs of fatigue, with traders' unrealized profit margin reaching 33%, its highest level since December 2024. Holders have also realized a significant amount of BTC in profit, with the largest daily amount being 25,700 on September 22. Meanwhile, apparent spot demand has contracted by 170,000 BTC over 30 days.

CryptoQuant still describes the broader cycle as a young bull market, but warns that stretched profits and cooling demand could lead to a near-term correction. The immediate question is whether rising exchange inflows become actual selling pressure or are absorbed by continued market demand.