Altcoin Season Builds as Most Holders Remain Underwater

Key Insights

• Altcoin season is gaining momentum, but less than 25% of the median altcoin’s circulating supply is currently in profit.
• Glassnode data shows most altcoins remain underwater despite the recent crypto market rally.
• Rising altcoin participation has yet to translate into broad profitability as selling pressure persists around breakeven levels.

Altcoin season is gaining momentum. But Glassnode data shows that most altcoin holders remain underwater. As of September 23, less than 25% of the median altcoin’s circulating supply was in profit.

Recent gains have not yet translated into broad profitability. Still, more altcoins are now participating in the wider crypto market rally.

Altcoin Season Meets a Profitability Gap

The latest data from Glassnode shows one major difference over the last couple of months. Its altcoin cycle signal flipped from Bitcoin season to altcoin season after the latest rally spread to more than just Bitcoin.

During the August rally, Glassnode noted that while many altcoins were relatively flat, Bitcoin was taking the lion’s share of the market’s gains. The more recent move has been more broad-based.

The change has also pushed the Altcoin Season Index up. According to CoinMarketCap, the reading was 49 out of 100 on September 22 compared to 32 a week ago and 40 a month ago. The reading hit 50 the day before.