CryptoQuant analyst Darkfost said the altcoin market is starting to show early warning signs of speculative overheating, even as capital continues to pour in. Since June 2026, the Total2 index, which tracks the total altcoin market capitalization including Ether, has absorbed more than $371 billion in inflows and risen 45% within a few months. The shift is also visible in Binance-listed altcoins, where a growing share of tokens has moved above the 200-day moving average. In August, 80% of those altcoins were still trading below that level. That figure has now dropped to 13%, meaning 87% have reversed their earlier trend and turned bullish. Darkfost said the change points to a market increasingly driven by euphoric sentiment, but added that similar setups have historically struggled to last and often lose momentum over time. He also noted that altcoin inflows to exchanges have climbed to their highest level since October 2025, the peak of the previous market cycle. Weekly average deposit transactions now stand at 22,700 on Binance and 8,300 on Coinbase, with about 32,000 more spread across other exchanges. Even so, he said the current scale of exchange inflows remains relatively moderate compared with the opening phase of the last bull cycle.
CryptoQuant analyst Darkfost said the altcoin market is showing early warning signs of speculative frenzy, raising questions about how long the current rally can hold.
According to Darkfost, altcoins have attracted heavy capital inflows in recent months. Since June 2026, the Total2 index, which measures total altcoin market capitalization and includes Ether, has taken in more than $371 billion, marking 45% growth in just a few months.
More Binance-listed altcoins move above the 200-day average
The rush into altcoins has also shown up in price action among tokens listed on Binance. A growing number of them are now trading above their 200-day moving average.
Darkfost said that back in August, 80% of Binance-listed altcoins were still below that level. That share has now fallen to 13%. In practical terms, 87% of altcoins on the exchange have reversed their earlier trend and shifted into bullish territory.
He said the move suggests euphoric sentiment is spreading across the altcoin market. Based on historical patterns, though, that kind of market setup often does not last and tends to lose upside momentum.
Exchange inflows hit the highest level since October 2025
Darkfost also said the amount of altcoins flowing into exchanges has climbed to its highest point since October 2025, which marked the top of the previous market cycle.
Weekly average deposit transactions have risen to 22,700 on Binance and 8,300 on Coinbase, with another roughly 32,000 transactions spread across other exchanges. Even with that increase, the current scale of altcoin inflows to exchanges remains relatively moderate compared with the early stage of the previous bull market cycle.
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