Altcoin Rally Faces Potential Challenges as Exchange Deposits Surge
The recent altcoin rally is facing potential challenges as exchange deposits involving altcoins have surged by nearly 160% in just two weeks. According to CryptoQuant data, the seven-day number of altcoin deposits reached around 78,000 transactions on September 28, compared to approximately 29,800 on September 14. This is the highest reading since October 2025.
The surge in exchange deposits has raised concerns that holders are beginning to lock in profits after September's strong performance. The increase in depositing addresses nearly tripled from 17,600 to around 51,600, suggesting the rise is broad rather than being caused by several large wallets.
Near Protocol (NEAR), Stellar (XLM), and XRP have been among the strongest performers in September, but their recent weekly performances are now showing signs of fatigue. Despite their strong gains, NEAR and XLM are down approximately 2.9% and 1.5% over the latest 24-hour period, respectively, while XRP has fallen around 1.2%. The broader environment also warrants caution, as CryptoQuant data indicates that Bitcoin spot demand contracted by roughly 170,000 BTC over 30 days.