The crypto market has spent much of an eight-month stretch under pressure, shedding more than $2 trillion since peaking in October 2025. Traders are now more optimistic than ever about a potential rebound, buoyed by the broader market’s performance over the past week and, more recently, by altcoin season indicators signalling that capital flows are gradually stabilizing. The market has climbed 8.93% in the past week alone, with net inflows totaling $152.46 billion as momentum continues to build.
Altcoin Season Index Crosses 53
The clearest signal of a possible rebound comes from the altcoin season index, which has crossed the 53 mark at the time of reporting. The altcoin season index measures the flow of capital into other cryptocurrency relative to Bitcoin. The recent surge marks the index’s highest level in three months, reached on June 3, 2026, and points to renewed investor interest.
Source: CoinMarketCapThis does not yet mark altcoin season—the period when a broad set of altcoins post significant gains—a phase the market reaches only when the index climbs above the 75 mark. One notable difference this time is that altcoin market capitalization is moving in step with the index. When the index last reclaimed the 53 mark in early June, altcoin capitalization was falling rapidly, but the two are now trending together.
Altcoin Returns Point to a Narrative-Driven Market
An analysis of the returns these other cryptocurrencies generated across the market over the past 90 days shows a market now driven by narrative, with the prevailing story determining which tokens rally. Most of the top 10 performers by return cluster around governance tokens, perpetual DEX tokens, AI tokens and privacy coins, alongside a handful of memecoins carrying little to no utility.
Among perpetual DEX tokens, Hyperliquid [HYPE] and Lighter [LIT] have generated 144% and 93% over the period. On the privacy side, Zcash [ZEC] stands out, while governance tokens Terra Luna Classic [LUNC], Aerodrome [AERO] and Jito [JTO] have posted gains of 71%, 79% and 176% respectively.
Source: CoinMarketCapThe pattern points to a market that, even as it rallies, is narrowing, with capital rotating among a small set of tokens. Net flows out of the broader crypto market have fallen roughly 18.4% over the past 90 days, with $430.57 billion removed—a measure of how far these select altcoins have run despite the market’s weakened state.
Bitcoin and Ethereum Underperformance Weighs on the Market
The market’s largest cryptocurrencies are still struggling and have yet to post gains. Bitcoin [BTC] and Ethereum [ETH], with market capitalizations of $1.27 trillion and $216.40 billion respectively, have both underperformed over the past 90 days, falling roughly 7.7% and 15%.
With the broader altcoin market still down, one reliable signal that a rebound is taking hold would be a sustained move of capital into Bitcoin, the path altcoins tend to follow. At the time of reporting, Bitcoin is up 1.5% over the past day and 6.7% over the past week, holding firm despite the sentiment that followed a recent $216 million Bitcoin sale by Strategy, the firm chaired by Michael Saylor, to help fund a dividend payment.
Other Articles
