The altcoin market has made a strong comeback since June, adding more than $371 billion in value and showing clear signs of renewed momentum.
According to CryptoQuant analyst Darkfost, the market capitalization of cryptocurrencies excluding Bitcoin has grown by about 45% since June. The TOTAL2 index, which includes Ethereum but excludes Bitcoin, has climbed to around $1.17 trillion.
One of the biggest signs of this recovery is how many altcoins have moved back above their 200-day moving averages. Darkfost estimates that 87% of altcoins listed on Binance are now trading above this important long-term indicator. Only a few months ago, the situation was completely different. At the end of June, around 84% of Binance-listed altcoins were trading below their 200-day averages.
This shows how dramatically market sentiment has changed in a short period.
A 200-day moving average is often used to measure the long-term trend of an asset. When most coins trade above it, traders generally see that as a sign of broad market strength.
The improvement has been visible across the altcoin market. Earlier in September, only about 70% of Binance-listed altcoins were above their 200-day averages. The latest jump to 87% suggests the recovery has continued to spread across a larger number of projects.
Market capitalization data tells a similar story. TOTAL2 has gained more than $371 billion since June, while TOTAL3, which excludes both Bitcoin and Ethereum, has also risen sharply and now sits near $810 billion.
Trading activity has increased as well. Binance recently recorded around 31,800 altcoin deposit transactions on a seven-day average basis. That is nearly four times higher than the average seen in July.
Higher deposit activity often signals growing participation in the market, although it does not necessarily mean investors are selling. Deposits simply show that more coins are being moved onto exchanges where they can be traded.
The recent rally has also been supported by stronger activity in the derivatives market. Earlier this month, altcoin futures open interest moved above Bitcoin’s for the first time in nearly two years, showing that traders are becoming increasingly active in alternative cryptocurrencies.
Even with the strong recovery, Darkfost believes investors should pay attention to possible warning signs.
He noted that market conditions are starting to resemble a period of growing excitement and optimism. When nearly nine out of ten tracked altcoins are trading above their long-term averages, the market can become more sensitive to corrections.
The analyst also pointed to signs that momentum may not be rising as quickly as market value, which can sometimes indicate that a rally is beginning to lose strength.
For now, however, the broader trend remains positive. Altcoins have recovered strongly from their summer weakness, capital continues flowing into the sector, and a large majority of Binance-listed coins are once again trading above key long-term levels.
Whether the rally continues or slows down, the past few months have marked one of the strongest recoveries the altcoin market has seen since the beginning of the year.
