HomeNews36% Plunge in Altcoin Inflows Signals Next Altseason

36% Plunge in Altcoin Inflows Signals Next Altseason

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  • Altcoin exchange inflows drop 36% to $1.6B monthly, down from $2.5B annual average, signaling reduced sell pressure metrics.
  • Historical data shows similar low inflows precede major altcoin rallies like those in August–September 2024 and late 2023.

CryptoQuant analyst Axel Adler Jr. flagged a sharp drop in altcoin exchange inflows that may signal the start of a fresh rally. The data, shared on X on June 27, shows that monthly inflows fell to $1.6 billion—36 percent below the $2.5 billion annual average.

Exchange inflows measure the amount of altcoin tokens moving onto trading platforms. When that figure falls, it often means holders keep their coins off exchanges, reducing selling pressure. Historically, similar pullbacks in inflows have come before major price gains for tokens beyond Bitcoin.

From August to September 2024, inflows dipped below the annual average, and altcoin prices rose sharply in the following weeks. Likewise, the second half of 2023 saw low exchange inflows before a broad token upswing. These patterns support the view that lower inflows can form a quiet buildup before a surge.

On the chart, green circles highlight periods when flow dipped below the 1.6B monthly baseline early 2023, the second half of 2023 and August–September 2024.
Source: CryptoQuant

Adler Jr. said that when inflows slip under $1.6 billion, market participants often shift from short-term trading to longer-term holding. At times, funds first flow into Bitcoin before returning to altcoins with renewed strength. Thus, a brief lull on exchange deposits can set the stage for a powerful comeback in tokens like Ethereum, Solana and others.

CryptoQuant’s chart shows the recent drop coinciding with sideways price action. As capital consolidates off exchanges, the market may be entering an accumulation phase. Traders often watch for volume spikes on exchanges as an entry signal once inflows rise again.

Why does this matter? With fewer coins on platforms, any uptick in buy orders can have an outsized impact on price. In effect, the market “tightens” its supply, making room for sharper upward moves when demand returns. That setup can unleash quick gains if sentiment turns positive.

Of course, no single metric guarantees a rally. Geopolitical factors, regulatory news and broader market trends still play a role. Yet the inflow drop adds to other bullish signs, such as growing on-chain activity and stablecoin balance growth.

For now, traders may watch inflows and price levels for confirmation. A rise in exchange deposits could dampen upside potential, while continued low inflows might keep the door open for the next altseason wave.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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