According to recent data from the on-chain cryptocurrency platform CryptoQuant, altcoin inflows to Binance, the world's largest cryptocurrency exchange, have reached their highest level in several months.
Amid this increasing trading activity, the Altcoin Season Index stands at just 35. However, analysts believe an altcoin season may be approaching soon.
Binance's Altcoin Surge... What Does It Mean?
Martoon, a community analyst at CryptoQuant, emphasized this change in a recent post. He mentioned that altcoin deposits had been steady over the past few months, with no significant changes in activity. This occurred while Bitcoin's price was stagnating.
However, he observed that recent deposits are increasing, with 7-day transaction counts exceeding 45,000. This represents the highest level since late 2024.
"This increase could indicate that more traders are preparing to act." – Martoon
The analyst added that altcoin activity increased as Bitcoin's price recently surpassed $112,000. He said this price movement attracted interest in altcoins. However, increased exchange inflows typically indicate selling pressure.
"When these deposits increase, it means users are moving funds to exchanges for trading. This could lead to buying (in case of USDT/USDC deposits) or selling (altcoins to stablecoins) depending on the market's next move, but activity is clearly increasing." – Martoon
That's not all. CryptoQuant's data shows a notable increase in the number of addresses and cumulative transaction count for altcoins. This suggests higher levels of trading activity in the altcoin market.
Despite increased activity, the Altcoin Season Index does not yet show an official return of the altcoin season. This index tracks the performance of the top 50 cryptocurrencies (excluding stablecoins and wrapped tokens) over 90 days, with altcoin season designated when 75% of these coins outperform Bitcoin.
The current indicator falls short of this criterion, indicating that Bitcoin continues to dominate market sentiment.
Moreover, one trader and analyst argues that the altcoin season has ended due to oversupply, lack of liquidity, and dispersed retail investor interest.
"The altcoin season is over—and it's not coming back. Altcoin season meant 50 projects rising 20–100x. Now it's 5 cult coins pumping and 5000 other coins quietly dying." – he stated.
According to him, instead of a broad altcoin rally, it's now a 'narrative season' where only the most popular projects thrive.
Nevertheless, other analysts remain optimistic that an altcoin season is imminent.
"Altcoin season is coming. We're back in the same zone that birthed 5x–20x moves in 2019 and 2020. Bitcoin dominance has peaked. Altcoins are preparing for a explosive breakout. When this spring releases... the game begins." – Merlijn The Trader wrote.
#AltSeason Index is looking like this, and people are calling for a top.
— Ted (@TedPillows) August 5, 2025
We're in a post-halving year, and yet it's #Bitcoin season.
This is your best opportunity to stack utility alts before they go parabolic. pic.twitter.com/bkHPAK0ZaK
Another analyst pointed out that while it's not yet an altcoin season, conditions are forming. She suggested September could be a crucial month for a breakthrough.
"Altcoin Momentum: Slowly building across ETH, meme tokens, and DeFi. There might be an accumulation phase in progress, which is typical of August patterns." – Lucie stated.
BeInCrypto also emphasized that the altcoin market is showing performance similar to US small-cap stocks. These are all considered high-risk, high-return investments. With optimism rising for small businesses, there is potential for continued growth, suggesting altcoins have more room to expand.
