The cryptocurrency market capitalization has reached unprecedented levels this week, with Bitcoin reaching its all-time highest value of $118,000 per coin. But not only BTC is enjoying the spoils of that trend.
Altcoins have also gained some momentum over the last few days, signaling that ‘altseason’ hopes are not dead yet. The capitalization of the market, excluding Bitcoin, reached its highest level since February at $1.32 trillion.
Meanwhile, market-leading altcoins are enjoying a fruitful last couple of days. Ethereum is up by 17.91% over the last week, and XRP saw an outstanding 23.40% growth in that same timeframe.
On-chain data from the Binance netflow heatmap reveals a wave of altcoin withdrawals. While it may seem counterintuitive, exchange withdrawals typically mean that investors are moving assets to self-custody wallets, likely for long-term holding.
The heatmap, shared by analyst João Wedson on Twitter, shows a dominant pattern of net outflows across dozens of altcoins, including Ethereum (ETH), Chainlink (LINK), Maker (MKR), Shiba Inu (SHIB), and Aave (AAVE).
“This kind of sustained outflow across multiple altcoins suggests smart money is positioning for the next leg up,” Wedson noted.
Among the most accumulated tokens are:
- DeFi and infrastructure coins: LINK, MKR, SNX, AAVE, CRV, 1INCH
- AI and gaming assets: FET, GHST, ALICE, ILV
- Meme and retail favorites: SHIB, DOGE, SLP
- Blue-chip altcoins: ETH, UMA, ENJ
More importantly, exchange volume continues on a high note, currently averaging $30 billion of trading volume per day. This corroborates with the idea that investor activity remains elevated, even as Bitcoin consolidates near the top.
Bitcoin dominance (BTC.D), also known as the percentage of the total market that is made up of Bitcoin, has also been modestly trailing downward. Dominance dropped from 66% since late June to the current 64.59% in just a few weeks.
While it’s certainly too early to join “altseason” hype, this “trickle-down” effect of Bitcoin accumulation diluting into the altcoin market aligns with historical accumulation phases that often precede altcoin rallies.
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