Altcoins Dominate as Traders Pour $135B into Market Amid Bitcoin Rally
Altcoins have taken center stage in the latest crypto market rally as trading activity and market capitalization surge alongside Bitcoin's sharp move higher. According to CryptoQuant analyst Darkfost, investor attention and capital have moved strongly toward altcoins, 'potentially signaling a broader resurgence of risk appetite across the market.'
The total altcoin market capitalization, measured through Total2 and excluding Ethereum, increased by around $135 billion during the past week as Bitcoin gained nearly 25%.
On Binance, which represents nearly 40% of altcoin trading volume across exchanges, these tokens accounted for as much as 65% of total volume at their peak. At that point, Bitcoin made up just 21% of volume, while Ethereum accounted for 13.6%, indicating a clear redistribution of liquidity across the market.
The 'Altcoin Impulse' reading jumped to 93%, suggesting that the rally has spread across a large part of the market. However, it considers breadth above 75% overextended, meaning the move could face exhaustion or a reset.