Altcoin traders are rotating into tokens tied to revenue-generating protocols rather than memecoins, with names like Uniswap, Arbitrum and Near posting triple-digit gains over the past 30 days. CoinMarketCap's Altcoin Season Index has yet to cross into an official altseason, and data from Talos shows capital concentrating in a smaller group of assets than in past cycles.
Traders are rotating into altcoins with working business models rather than chasing pure speculation, early signs from the current market cycle suggest. Uniswap's UNI gained more than 110% over the past 30 days, Arbitrum's ARB jumped over 150% and AI-focused NEAR shot up around 180% in the same window.
Memecoin launchpad token PONS still soared more than 350%, so speculation has not disappeared. But among the top 20 gainers last week, only two were memecoins, and only Pudgy Penguins made that list in the most recent week.
Revenue-generating tokens draw capital
Looking at gains across ARB, UNI, Jupiter's JUP and Ondo's ONDO, Bankless podcast host David Hoffman said these tokens share one trait: "They make money, they all print revenue," suggesting that the rally could be driven by utility rather than speculation.
1inch co-founder Sergej Kunz says memecoins still posted the strongest buyer growth over the past 30 days, but DeFi protocols, privacy tokens, AI projects and tokenized assets are also drawing attention. He describes wallets buying a wider range of tokens, generally in smaller amounts, as breadth arriving before depth.
Altcoin Season Index still below the threshold
CoinMarketCap's Altcoin Season Index sits at 64 out of 100, up from 48 a week earlier but still short of the 75 mark that would confirm an official altseason. Privacy token Zcash hit a record high above $1,600 last week, while Bitcoin Layer-2 token LIT and memecoin launchpad token PUMP also rank among the biggest gainers.
Trading firm Talos says the top 10 altcoins now account for roughly 80% of total altcoin market cap, up from around 70% at the end of 2024. Talos head of international markets Samar Sen says the data points to capital clustering around a smaller number of assets rather than rotating broadly into the long tail.
Dealers step back as retail access widens
Talos data shows dealer participation in altcoin trading has fallen from around 65% at the end of 2024 to about 32% in September, even as buying flows stayed strong. Sen says access has also widened, with exposure that once required trading directly on decentralized venues now available through mainstream platforms.
Separately, one unconventional pairing, a memecoin traded against a tokenized stock, generated more than $425 million in 24-hour trading volume in early September.
Source: Cointelegraph.com News
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