Altcoin Market Soars 45% But Signs of Overheating Emerge

The altcoin market capitalization has surged by over $371 billion since June, marking a 45% increase in just a few months. This growth is evident in TOTAL2, a gauge of the combined market capitalization of altcoins including Ether.

According to CryptoQuant contributor Darkfost, the broad-based advance across the altcoin market may be approaching an inflection point. In August, 80% of altcoins listed on Binance were trading below their 200-day moving average. However, this figure has now reversed, with 87% trading above the level.

This shift suggests that buying interest has spread across the altcoin market as a whole, while also pointing to the possibility of market overheating. Darkfost notes that in past periods when a large number of altcoins traded above their long-term moving averages, upward momentum gradually weakened.

Exchange deposits have reached their highest level since October last year, with 22,700 deposit transactions per week on Binance and 8,300 on Coinbase. However, current exchange inflows remain limited compared to the early phase of the previous bull market.