Among altcoins listed on Binance, 87 percent are trading above their 200-day moving averages, signalling overheating across the market.

CoinPost, a blockchain media outlet, cited CryptoQuant analyst Darkfost on Sept. 28 that the altcoin market may be entering a critical phase.

More than $371 billion has flowed since June 2026 into the crypto market capitalisation metric "Total2," which excludes bitcoin. That is a 45 percent increase in a few months. Total2 includes altcoins such as ether and stablecoins.

The key is a broad shift to gains. As recently as August, as much as 80 percent of Binance-listed altcoins were below their 200-day moving averages, but that share has recently fallen to 13 percent. That means 87 percent have regained the long-term trend line.

Darkfost viewed the change as a sign of a kind of euphoria spreading across the altcoin market. He added such moves have not lasted long and eventually lose momentum.

The amount moving to exchanges is also rising. The weekly average number of altcoin deposit transactions topped 22,700 on Binance and reached 8,300 on Coinbase. Combined with other exchanges, the figure is about 32,000. Darkfost said this is the highest level since October 2025, which he viewed as the previous market peak.

Deposit volumes themselves are still not large compared with levels seen early in the previous bull market. That means investors are leaving room for profit-taking moves, but it is not at a stage to conclude a broad selloff.

Technical indicators also show signs of slowing gains. Total2's relative strength index (RSI) showed a bearish divergence, in which price highs rise while RSI highs fall. That typically signals weakening upside momentum. Darkfost said the trend is worth watching closely.

Against this backdrop, the altcoin market has bullish factors, including strong inflows and a broad recovery in trends, but rising exchange deposits and technical signs of slowing are building at the same time. Attention is focused on whether gains will extend further or shift to a correction after overheating.