On Sept. 27, CryptoQuant analyst Darkfost said on-chain data shows the altcoin market may be moving into a more critical stage.
According to Darkfost, altcoins have recently attracted heavy capital inflows. Since June 2026, Total2, which tracks total altcoin market capitalization including ETH, has absorbed more than $371 billion, rising 45% in a matter of months.
More Binance-listed altcoins have moved above the 200-day average
Darkfost said the surge in demand is also visible in the number of Binance-listed altcoins trading above their 200-day moving average, a widely watched trend indicator.
In August this year, about 80% of altcoins on Binance were still trading below the 200-day moving average. That share has now dropped to 13%. By the same measure, 87% of altcoins on the exchange have reversed their earlier trend and entered an upward momentum phase.
He said the shift points to a degree of frenzy in the altcoin market. Based on historical patterns, however, rallies of this kind often do not last and can gradually lose strength.
Exchange deposits hit the highest level since October 2025
Darkfost also pointed to rising altcoin deposits to trading platforms. He said deposits have climbed to levels not seen since October 2025, a period that coincided with the top of the previous market cycle.
Weekly average deposit transactions have exceeded 22,700 on Binance, more than 8,300 on Coinbase, and about 32,000 across other trading platforms combined.
Even so, he noted that the current scale of altcoin inflows to exchanges remains relatively limited compared with the early phase of the previous bull market.
Total2 RSI shows bearish divergence
Darkfost said the signals still deserve close monitoring. In particular, Total2’s RSI has recently started to show bearish divergence, adding to signs that upside momentum in the altcoin market may be weakening.