Recent data indicates that altcoin deposits on Binance reached a weekly high, even as asset prices declined. This may signal a shift in the altcoin market trend.
Trends in Altcoin Deposits on Binance
Altcoin deposits on Binance spiked suddenly, raising speculations about either a potential sell-off or active altcoin trading. According to CryptoQuant data, cumulative altcoin inflows into Binance surged to a one-week high as price action weakened for the top 100 assets, excluding BTC and stablecoins.
Interpreting the Surge in Deposits
The increase in deposits occurred amidst a period of relatively low trading activity and saw over 45,000 incoming transactions. This surge comes after months of low activity, suggesting that some altcoin holders might be preparing to sell their assets. Meanwhile, stablecoin inflows also increased in July, injecting $2B into Binance’s markets.
Current Situation in the Altcoin Market
The altcoin season index cooled off, sliding to 37 points from a recent local high of 43. Over the past three months, leading altcoins have outperformed BTC, driven largely by meme pumps. However, the market is currently relatively quiet, especially in altcoin pairs with BTC, while activity against stablecoins has increased.
Under current market conditions, traders are showing caution. The rise in altcoin deposits may indicate readiness for active trading, although the market remains under pressure.
