Altcoins gain $371B since June - Can the rally survive rising exchange deposits?

摘要:Altcoin momentum is broadening as capital moves beyond Bitcoin into a wider range of tokens. Since June, Total2 has absorbed over $371 billion, increasing

Altcoin momentum is broadening as capital moves beyond Bitcoin [BTC] into a wider range of tokens. Since June, Total2 has absorbed over $371 billion, increasing its market capitalization by 45%.

This rotation is now spreading across Binance-listed assets, where only 13.6% are currently trading below their 200-day Moving Averages (MA), while 87% are trading above them.

Notably, the percentage of Binance-listed assets trading above their 200-day MA is significantly higher than it was a year ago

Source: CryptoQuant

The improved participation across the markets indicates a better distribution of price increases throughout the markets instead of being concentrated among just a few larger-capitalized tokens.

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If broader participation does continue, then the price action of the current rally will likely become more volatile should capital begin to flow away from those smaller-capitalized tokens.

Are altcoins facing selling pressure?

The spike in altcoin breadth is now colliding with an explosion in trade volume on exchanges. This is potentially a tipping point that could put downward pressure on the rally.

The 25th of September saw approximately 70,000 altcoin deposits, the largest number of altcoin deposits seen since the 17th of October, 2025.

Much of this flow came from Binance, while Coinbase, Bybit, and OKX provided additional inflows to exchanges. The fact that volumes of tokens are being deposited into exchanges as prices begin to climb is important.

Source: CryptoQuant

This allows for increased trading activity. However, these same token deposits also add to the total amount of tokens available to be sold if the rally reverses or the pace of new buying slows down.

If the volume of altcoin deposits remains, then the increasing number of tokens being offered at higher levels of the market could consume the emerging demand for those same tokens.

Therefore, continued growth in the volume of altcoin deposits may create greater volatility for altcoins.

Can altcoins sustain the rally?

The recent altcoin surge now faces a test of how much real liquidity supports the move. Stablecoin supply remains near $305 billion, showing limited fresh capital entering the market.

This matters because rising prices can attract leverage even when new spot demand remains weak. If Open Interest (OI) grows faster than spot activity, traders become more dependent on borrowed exposure to sustain momentum.

Source: DeFiLlama

That structure can magnify selling when prices reverse, especially after exchange deposits recently reached multi-month highs. By contrast, stronger spot volume with contained funding would show healthier demand behind the rally.

Until then, the rally remains vulnerable to sharper volatility if positioning unwinds.

Final Summary

  • Altcoins are gaining broader market participation, but rising exchange deposits could increase selling pressure if fresh demand weakens.
  • Altcoin momentum still depends on stronger spot liquidity, as rising leverage could amplify volatility if the rally loses breadth.

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