In an August 6 analysis, CryptoQuant contributor Maartum pointed out something intriguing: altcoin traffic on crypto exchanges is making a big comeback. Binance deposits have surged sharply in the past week, with the 7-day transaction count skyrocketing to over 45,000. That’s the highest number we’ve seen since late 2024, suggesting traders might be turning their attention back to altcoins.
Altcoin season making a comeback? With Binance inflows hitting an 18-month high, it sure looks like the tides are shifting. When investors start moving assets onto exchanges, it’s usually a sign they’re getting ready to make some trades. For months, though, inflows stayed flat, mainly because Bitcoin (BTC) was hogging the spotlight with its parabolic rally above $123,000.

Now, historically, when Bitcoin cools down, traders often rotate profits into smaller caps, like altcoins. If that’s happening again, this recent spike in deposits could be the first sign of a true altcoin season.
Of course, this is mostly visible on Binance so far. Being the biggest crypto exchange in terms of volume, Binance’s altcoin inflows tend to be a solid indicator of broader market shifts. Keep your eyes on this one.
Market Pulse
The altcoin market cap has increased by a solid 23% over the last month, adding some fuel to the bullish fire. Still, things feel a bit sluggish overall. The Altcoin Season Index currently sits at 37, down from its peak above 55 just a month ago. The index typically needs to hit 75 or more to confirm an altseason, and right now, we’re not even close.

Social sentiment doesn’t paint a much brighter picture either. Santiment data shows that altcoin engagement has cooled off, with volume and dominance sliding back to April’s levels after a July spike. This suggests that Bitcoin is still firmly holding the reins, commanding 60.7% of the overall market.

But hold on, altcoins aren’t exactly sleeping through all this. Ethereum (ETH) and XRP have both posted a modest 2% gain, while Solana (SOL) and Sui (SUI) are seeing around 3%. In fact, some altcoins like Pudgy Penguins (PENGU) and PancakeSwap (CAKE) are up by 6-8%. Stellar (XLM), Algorand (ALGO), and Cronos (CRO) are all seeing healthy gains too.
So while we're not officially in altcoin season just yet, the momentum is building. Whether this turns into a full-blown rally remains to be seen, but things are definitely heating up. Keep an eye on those altcoins, they might just surprise us all!

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