After a lull in altcoin enthusiasm, signs are emerging that investor interest may be returning. Binance, the world’s largest crypto exchange, has seen a surge in altcoin deposits, reaching over 45,000 transactions in a week—the highest level in 18 months. This uptick is seen as a potential early signal that traders are rotating profits from Bitcoin into alternative digital assets.

Bitcoin has recently dominated the market with a powerful rally past $123,000, suppressing activity in smaller coins. Historically, once Bitcoin’s momentum slows, traders shift toward altcoins seeking higher returns. The latest data hints this cycle might be repeating.

Binance’s rising inflow levels are particularly notable since they often precede broader market shifts. Meanwhile, the altcoin market capitalization has jumped 23% in the last month, reinforcing growing optimism. However, not all indicators confirm a full return of the altcoin season.

The Altcoin Season Index currently sits at 36, far below the 75 threshold typically associated with a confirmed altseason. Social engagement around altcoins has also dropped, reverting to levels seen earlier in the year. Bitcoin still commands over 60% of the market share, maintaining its grip on the overall sentiment.

Despite this, several altcoins are beginning to show positive momentum. Ethereum, XRP, and Solana have posted modest gains, while tokens like SUI, POL, Pudgy Penguins, PancakeSwap, Stellar, Algorand, and Cronos have recorded daily increases ranging from 4% to over 8%.

Although it’s too early to declare a full altcoin revival, recent data suggests that the market may be entering the early stages of a rotation—potentially setting the stage for a renewed rally in the altcoin space.