Conversations about a potential altseason are gaining momentum as altcoin prices rise. New on-chain data from CryptoQuant reveals a critical shift: the 30-day moving average of altcoin trading volume has now surpassed its 365-day moving average. This trend, identified by analyst CryptoOnchain, suggests steady capital rotation into smaller digital assets.
The metric used, the “CEX Volume Ratio: Others vs Top 5,” measures trading volume flowing into altcoins outside the top five cryptocurrencies relative to the combined volume of the top five. A rising ratio indicates that investors are shifting capital away from Bitcoin and Ethereum toward smaller tokens. This pattern historically precedes broader market rallies for altcoins.
CryptoOnchain noted that altcoin trading volume has been in a clear uptrend lately. The 30-day moving average climbing above the 365-day average signals that recent volume levels are consistently higher than the long-term norm. Such crossovers often attract traders looking for early signs of a market rotation.
If the trend holds, it could mark the beginning of an altseason, where altcoins outperform major assets. However, past cycles show that volume spikes can be short-lived, and a sustained rally requires broader market support. Traders are watching Bitcoin dominance closely for confirmation of a genuine shift.
Skeptics argue that this volume increase may be noise from speculative trading rather than a structural trend. Without a clear catalyst, the altseason narrative remains unproven until prices follow volume higher.