Analyst Darkfost from CryptoQuant reported on October 18, 2026, that small- and mid-cap crypto assets have outperformed Bitcoin since late August. The analysis tracks the ratio of monthly average market capitalization to the annual average for different segments.
Data shows that the momentum ratio for small- and mid-cap tokens grew by 41% during this period. In comparison, Bitcoin saw a 7% increase in its ratio, while large-cap assets recorded a growth of only 3.5%.
The analyst described this market pattern as unusual, noting that Bitcoin typically leads recoveries after market downturns. The current trend suggests a shift in momentum as traders show an increased appetite for risk.
Darkfost warned that smaller-cap assets remain highly sensitive to changes in market sentiment and capital flows. He cautioned that this trend is vulnerable to rapid reversals, as the observed period is relatively short.
