CryptoQuant analyst identifies sign of the next altcoin wave

CryptoQuant analyst Axel Adler Jr. said that crypto assets are starting to consolidate, which could indicate that the next altcoin boom may be coming sooner than we think.

According to a recent post on X, Adler Jr. found that the average monthly exchange inflow for altcoins has dropped 36% from the annual average capital flow of $2.5 billion.

According to the CryptoQuant analyst, on June 27, the average monthly altcoin exchange inflow stands at $1.6 billion. It fell by $900 million from the annual average monthly exchange flow of $2.5 billion.

“This moderate flow suggests asset consolidation and growing accumulation potential ahead of the next altseason wave,” said Adler Jr in his post.

The last time such an event occurred in the market was during the altcoin boom in August to September 2024. Even before then, the market experienced a similar cycle indicated by the drop in altcoin exchange flow below the baseline in the second half of 2023.

“In each instance, low exchange flows preceded significant altcoin price rallies,” said Adler Jr.

CryptoQuant: How exchange flow could indicate the next altcoin wave

When there is less capital flowing into crypto exchanges, it signals less selling pressure. This means that more investors are accumulating assets instead of offloading them on exchanges. They could be in the process of anticipating the next price rebound.

According to the CryptoQuant analyst, each time the exchange flow falls below the $1.6 billion mark, it becomes a precedent to significant altcoin rallies. This means that if the exchange inflow slips lower than $1.6 billion, it could result in the next “altcoin season.”

As inflows dry up, capital often shifts from short-term speculation toward longer-term holdings, or even toward Bitcoin (BTC). But once crypto asset accumulation builds, capital will be able to rotate back into altcoins with greater force, triggering the second phase of the cycle.

The data from CryptoQuant suggests that traders are currently entering the transition phase right before the next altcoin cycle. A prolonged dip in exchange inflows supports accumulation, a classic setup for future rally potential. If this holds, the timing could align with broader market recovery and rotation into higher-risk assets.