727 FinancePANews reported on September 27 that CryptoQuant analyst Darkfost wrote that the frenzy in the altcoin market is showing warning signs. Altcoins have attracted significant inflows of late. Since June 2026, the Total2 indicator, which represents the total market cap of altcoins (including Ethereum), has attracted more than $371 billion in funds, a 45% increase in just a few months.
This sudden rush for altcoins is also reflected in the price performance of altcoins listed on Binance: the prices of more and more coins have exceeded the 200-day moving average. Back in August, 80% of Binance altcoins were priced below this level; today, that percentage has dropped to 13%. This means that 87% of altcoins on the platform have reversed their previous trend and turned bullish. This shift is indicative of the frenzy permeating the altcoin market. However, judging from historical experience, this market situation is often difficult to sustain and will eventually lose its upward momentum.
Additionally, the number of altcoins flowing into exchanges has climbed to levels not seen since October 2025, the previous market high. Currently, the average weekly number of deposit transactions on Binance and Coinbase has risen to 22,700 and 8,300 respectively, with approximately 32,000 transactions spread across other exchanges. Still, the current volume of altcoin inflows into exchanges is still relatively modest compared to the volume seen at the beginning of the last bull cycle.