Altcoin Market Shows Warning Signs as Exchange Deposit Transactions Rise
Total2 has attracted more than $371 billion since June, while a bearish divergence in its RSI points to weakening momentum despite broader gains.
The altcoin market has attracted substantial capital since June 2026, but rising exchange deposit transactions and weakening momentum indicators suggest it may be entering a more critical phase.
Total2, which represents the total market capitalization of altcoins including Ether, has absorbed more than $371 billion over the period, a 45% increase. The scale of the move has brought signs of frenzy to the altcoin market.
The shift is also visible among Binance-listed altcoins. In August, prices for about 80% of those tokens were below their 200-day moving averages. That share has since fallen to 13%, meaning 87% of Binance-listed altcoins were above their 200-day moving averages.
Altcoin deposit transactions at exchanges have reached their highest level since October 2025, when the market was at the previous top. Binance is averaging more than 22,700 altcoin deposit transactions a week, while Coinbase is averaging more than 8,300 altcoin deposit transactions. Other exchanges account for about 32,000 weekly altcoin deposit transactions combined.
Current altcoin inflows to exchanges remain smaller than those recorded during the early phase of the previous bull market. However, the combination of rising deposits and a bearish divergence in Total2’s relative strength index, or RSI, indicates that the market’s upward momentum may be weakening.
