Altcoin market activity rises amid expectations of an ‘altcoin season’

Speculation regarding an ‘altcoin season’ is increasing as trading activity and leverage shift from Bitcoin toward altcoins. According to Glassnode, approximately 85% of altcoin futures trading pairs are seeing funding rates above baseline levels, the highest since Bitcoin approached its all-time high. This indicates that speculative demand and leverage are spreading to Ethereum and other major altcoins.

Data from CryptoQuant shows that altcoin trading volume on Binance has reached 65%, the highest level in two years. During recent Bitcoin price movements, the market capitalization of altcoins (excluding Ethereum) grew by approximately $135 billion. While these indicators suggest rising risk appetite, analysts warn that high funding rates can lead to ‘long squeezes’ if prices drop, as high costs for maintaining long positions may trigger mass liquidations. The sustainability of this trend depends on whether actual spot market inflows accompany the increase in derivative trading volume.