Altcoins led the market rebound, with capital inflows reaching US$135 billion
Altcoins played a leading role in the latest round of cryptocurrency market gains. As Bitcoin has risen sharply, the trading activity and market value of altcoins have soared simultaneously. Previously, the market experienced a long period of sluggish volatility and shrinking trading volume.
According to CryptoQuant analyst Darkfost, investors 'attention and funds are clearly shifting to altcoins,"which may indicate that market risk appetite is recovering across the board."
Largest market share soared in two years
Bitcoin has risen nearly 25% in the past week, while altcoins have significantly amplified the overall market trend. The total market value of altcoins, as measured by the Total2 index (excluding Ethereum), increased by approximately $135 billion over the same period. Darkfost pointed out that the scale of this change highlights the speed at which funds are pouring into the altcoin sector.
Trading data also showed significant changes. On Binanping Platform, which accounts for nearly 40% of the world's altcoin trading volume, altcoin trading volume once peaked at 65%. At the same time, Bitcoin accounted for only 21%, and Ethereum accounted for 13.6%.
Darkfost explained that the proportion of altcoins in Binance trading volume reached its highest point in two years. The gap between Bitcoin and altcoins suggests that market liquidity is being redistributed-altcoins attract a larger share of transactions than bitcoin and Ethereum.
The shift came after Trump made multiple statements on August 19, including calling on the United States to buy large quantities of bitcoin and urging Congress to pass the Clarification Act. Darkfost said the statements have driven the flow of funds to altcoins.
"Altcoin pulse" soared to 93%
Market breadth also showed strong momentum. Data from Altcoin Vector showed that its "altcoin pulse" indicator jumped to 93%, indicating that the rally has covered most sectors of the market. However, the agency believes that when the breadth exceeds 75%, it is considered excessive extension, which means that the rally may face weakness or correction.
analyst Matthew Hyland had previously predicted that altcoins could bring returns of 10 to 1000 times, and compared the June sell-off to the market crash in March 2020. Hyland said that June was actually the 2020 collapse of the altcoin version, and pointed out that if tokens such as Ethereum and Cardano develop according to this trend, they may gain extraordinary gains.
He also pointed out that many tokens may take months to recover lost ground, rather than years.

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