Key takeaways:
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Altcoins account for 71% of Binance Futures trading volume, marking a clear shift in trader interest from Bitcoin.
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Over 32,000 BTC entered exchanges, suggesting profit-taking and potential altcoin rotation amid rising volatility.
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TRX leads altcoin momentum with early decoupling from BTC, indicating a fragmented altseason focused on strong or hyped tokens.
An altseason continues to gain momentum as daily trading volumes on Binance Futures soared to $100.7 billion, the highest level since Feb. 3. This massive spike in activity comes on the heels of Bitcoin (BTC) breaking new highs in July, ushering in renewed retail interest toward altcoins.
Crypto analyst Maartunn said that while Bitcoin’s trading volume has remained relatively stable, altcoins are seeing a dramatic rise in activity. Altcoins currently make up 71% of total trading volume on Binance Futures as of July 22, highlighting a clear shift in trader attention away from Bitcoin.
Binance remains central to this trend. On the spot market, total altcoin volume across centralized exchanges (CEXs) reached $57.6 billion, with Binance handling $24 billion, i.e., 41.5% of the global share. That means nearly one in every two altcoin spot trades now occurs on Binance, reinforcing its dominance as altseason heats up.
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Onchain flows show Bitcoin distribution
Bitcoin has also seen its most significant net exchange inflows since July 2024, with over 32,000 BTC entering CEXs, indicating increased profit-taking and potential distribution by major holders. Historically, such inflow spikes have preceded deeper BTC corrections, potentially freeing up capital to rotate into altcoins.
As more BTC enters exchanges, market volatility may increase, especially if demand in the altcoin sector continues to surge. This capital rotation could intensify the ongoing altcoin rally if past cycles are considered.
However, crypto analyst Timo Oinonen cautioned that only a few tokens might benefit from the capital influx. Oinonen pointed to Tron (TRX) as an early indicator of this “selective altseason,” noting its consistent outperformance against Bitcoin since March, even as BTC continues to lead year-to-date returns.
TRX has begun to decouple from Bitcoin, a sign often seen at the onset of previous altseasons, where capital shifts to higher-beta assets from BTC in search of higher upside.
With over 43.4 million token contracts deployed across the market, the trading landscape is increasingly crowded, suggesting the upcoming altseason may be more fragmented, favoring only a limited set of fundamentally substantial or hype-driven assets.
Related: ‘Altseason is here’ — 5 things to know in Bitcoin this week
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.