Small- and mid-cap crypto assets have outpaced Bitcoin and large caps since late August, according to CryptoQuant analyst Darkfost. His momentum ratio for smaller tokens rose 41%, against 7% for Bitcoin and 3.5% for large caps. He also warned that the trend is vulnerable to rapid reversals.
CryptoQuant analyst Darkfost reported that small- and mid-cap crypto assets have grown their market capitalization faster than Bitcoin since late August. In findings shared on October 18, 2026, he said they also outran the large-cap names that usually trail just behind Bitcoin. According to Darkfost, the pattern is "fairly unusual."
Smaller tokens post a 41% jump
Darkfost's metric compares each segment's monthly average market cap against its annual average. A monthly figure well above the annual one means the segment is running hotter than its own long-term norm, so the metric measures momentum rather than raw size.
On that basis, small- and mid-cap assets posted 41% growth in the ratio since late August. Bitcoin's ratio rose 7% over the same window. Large-cap assets, the established names below Bitcoin in the rankings, managed just 3.5%.
Why the pattern breaks the usual script
Darkfost flagged the trend because of how crypto recoveries have typically unfolded. Bitcoin has traditionally led the way out of downturns, with capital flowing into the largest and most liquid asset first. That pattern was especially visible after the 2023 bear market.
However, Darkfost paired the observation with a clear warning. He stressed that smaller-cap assets are highly sensitive to shifts in market sentiment and capital flows, and that the trend is vulnerable to rapid reversals.
The window is also short. Darkfost's data begins in late August, and the comparison against annual averages does not guarantee the momentum will hold.
Source: Crypto Briefing
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