Altcoin trading volume hits two-year highs at 65% of Binance volume as $135B flows into altcoins alongside Bitcoin's 25% rally.
Macro & Markets ·
Altcoin trading activity has reached a two-year peak as nearly $135 billion in capital flowed into the sector alongside Bitcoin's roughly 25% weekly gain. On Binance, which handles close to 40% of altcoin volume across exchanges, these tokens reached 65% of total trading volume at their peak—the highest share in two years—while Bitcoin and Ethereum comprised 21% and 13.6% respectively. According to analysis from CryptoQuant, this shift reflects renewed risk appetite among investors after a period of subdued activity.
Market breadth metrics underscore the breadth of participation in the rally. The 'Altcoin Impulse' reading surged to 93%, indicating widespread market engagement across the altcoin segment. However, analysts flagged that such elevated readings above 75% historically signal overextension, carrying risk of market exhaustion or correction. The timing of the move coincided with several policy announcements from late August, which analysts linked to the acceleration of liquidity into altcoins.
What remains unclear is whether the current breadth levels can be sustained or whether a near-term reset may occur. The material does not specify which altcoins drove the bulk of the $135 billion inflow or provide forward-looking price targets specific to individual tokens beyond general commentary on potential multiples.