On-chain analyst Darkfost reports that the altcoin market is entering a critical phase characterized by rising exchange deposits and bearish divergence. Since June, the Total2 indicator, which tracks altcoin market capitalization including Ethereum, has seen an inflow of $371 billion, marking a 45% increase over several months.
Despite the growth, the Relative Strength Index for Total2 has entered a bearish zone. On Binance, 87% of altcoins have entered a bullish phase, with only 13% trading below the 200-day moving average, compared to 80% in August. The analyst notes that this shift reflects market euphoria, which has historically proven to be unsustainable.
A surge in altcoin deposits to exchanges has reached levels not seen since October 2025. Weekly average deposit transactions have exceeded 22,700 on Binance and 8,300 on Coinbase, with an additional 32,000 transactions recorded across other trading platforms.
