A sharp increase in altcoin exchange deposits is raising concerns about mounting selling pressure, as holders appear eager to capitalize on recent gains following a robust September rally across several digital assets.
Altcoin deposits hit yearly high
CryptoQuant reported that the number of daily deposit transactions involving altcoins climbed to around 78,000 by September 28. This marks a substantial leap from 29,800 recorded on September 14, representing a 160% increase within two weeks and the highest deposit activity since October 2025.
The growth is widely distributed, with the number of unique depositing addresses nearly tripling from 17,600 to approximately 51,600 in the same period. This points to broad participation among investors rather than a spike led by a handful of large traders.
This expanded activity brings “the highest altcoin deposit levels in almost a year,” with CryptoQuant emphasizing the need to monitor distribution risk and support levels as market dynamics shift.
Profit-taking stirs volatility for top gainers
Leading September’s altcoin rally, Near Protocol (NEAR) trades around $5.29 after advancing roughly 21.7% within a week. Stellar (XLM) maintains weekly gains near 9.9% at $0.2236. XRP, meanwhile, is valued at approximately $1.48, reflecting substantial monthly appreciation.
However, the heightened deposit activity suggests growing numbers of token holders now sit on considerable unrealized profits. Moving assets onto centralized exchanges does not guarantee immediate selling, but it places tokens closer to liquidity, increasing the risk of large-scale distribution if profit-taking accelerates.
CryptoQuant interpreted the spike as a signal of rising sell-side potential, warning that such dynamics could pressure support levels built during the recent rally.
Momentum fades as environment turns cautious
Short-term momentum for these tokens is already showing signs of fatigue. Despite weekly gains, NEAR and XLM fell by roughly 2.9% and 1.5%, respectively, in the past 24 hours. XRP also retreated by about 1.2% over the same period.
The wider crypto market is also displaying tentative signals. CryptoQuant data indicates that Bitcoin spot demand contracted by about 170,000 BTC over 30 days. At the same time, speculative futures demand growth dropped by approximately 90% between September 14 and 29. As of the latest data, recent Bitcoin buyers were holding average unrealized profits close to 33%.
While these metrics do not definitively mark the end of the rallies in assets such as XLM, NEAR, and XRP, the surge in exchange deposits signals an environment with greater potential for heightened distribution.
Given the importance of monitoring market shifts, especially after significant price increases, attention is also turning to ancillary markets where investor behavior can rapidly change sentiment. In the meme token market, an internet trend can transform into millions of dollars of interest within days. According to data shared by Fomo App, a trade involving “Niu Lai”—which turned an initial $99 investment into approximately $370,000—stands out as a striking example of this activity. In this market, tracking not only prices but also the timing and token choices of investors is crucial. Fomo App brings token discovery and trading together on a single platform, featuring social feeds, investor rankings, and trade notifications. Discover Fomo App to follow the world of meme tokens alongside investor activity.
The immediate test for major altcoin holders is whether current market demand can absorb this higher supply without eroding key support zones built during September’s advance.
