Key Insights
- Altcoin season is building momentum, yet under 25% of the median altcoin’s circulating supply sits in profit.
- Figures from Glassnode indicate that the majority of Bitcoin.">altcoins are still underwater despite the ongoing crypto market rally.
- Even though altcoin participation is on the rise, heavy selling pressure persists around breakeven price points, limiting overall profitability.
Altcoin season is gathering steam, but data from Glassnode reveals that most altcoin holders are still underwater. As of September 23, fewer than 25% of the circulating supply for the median altcoin sat in profit.
While recent price surges have not yet translated into widespread profitability, a growing number of Bitcoin.">altcoins are now taking part in the broader crypto market recovery.
Altcoin Season Meets a Profitability Gap
The latest figures from Glassnode point to a clear shift over the past couple of months. Their altcoin cycle signal recently transitioned from Bitcoin season into altcoin season as market rallies expanded beyond just Bitcoin.
During the August market rally, Glassnode observed that many altcoins stayed relatively flat while Bitcoin captured the majority of market gains. In contrast, the more recent price movement has been far more comprehensive.
This shift has pushed the Altcoin Season Index upward. According to CoinMarketCap, the index reached 49 out of 100 on September 22, up from 32 a week prior and 40 a month prior, having touched 50 just the day before.
These metrics signal general improvement, but they do not mean the majority of altcoins have fully recovered past losses.
Glassnode’s most recent profitability metrics highlight this nuance. Less than one-quarter of the median altcoin’s supply is currently profitable, leaving more than 75% of the measured supply trading below its on-chain cost basis.
Consequently, a massive block of token supply stands to approach breakeven thresholds as prices climb upward.
Why Breakeven Levels Matter
The supply-in-profit metric contrasts prevailing market prices against the specific price points where tokens last moved on-chain.
Assets acquired beneath today’s market values count as profitable, whereas those purchased at higher valuations stay underwater.
As additional altcoins rebound, investors who previously faced losses move closer to their original purchase prices.
Glassnode’s numbers therefore demonstrate that a massive volume of holders have yet to see their positions return to profitability.
Furthermore, the analytics firm noted that global market peaks historically happen when the majority of market supply sits deeply in profit—a condition that has not been met yet based on current readings.
This distinction remains vital for the altcoin season narrative: an escalating index highlights stronger relative performance, but it does not guarantee that the broader base of altcoin holders has fully bounced back.
Crypto Market Gains Are Becoming Broader
The uptick in altcoin participation has unfolded alongside a broader recovery across the entire cryptocurrency market.
As cited by The Coin Republic from CoinMarketCap data, the total crypto market capitalization crossed the $3 trillion threshold on September 22.
Bitcoin finished near $86,000, while ETH as its native asset.">Ether hovered close to $2,740 after posting a notable increase of roughly 10% over seven days. Meanwhile, the aggregate market value of all digital currencies expanded by about 4% over a 24-hour window.
The same report showed that numerous altcoins delivered impressive 90-day value gains: PONS jumped 636.36%, USELESS grew 350.75%, and ZEC rose 264.84%.
PUMP rallied 224.61%, while UNI, RAY, and ARB saw increases of 198.64%, 196.53%, and 178.20% respectively.
Additional 90-day gainers included NEAR up 131.78%, SOL climbing 69.40%, ADA gaining 66.82%, and ETH advancing 65.14%.
These statistics help account for the rising altcoin season indicators, proving that market participation is no longer restricted to a handful of tokens.
Nevertheless, multi-month performance metrics do not erase previous unrealized losses for investors who bought at market peaks.
This article is for informational purposes only and does not constitute financial or investment advice. On-chain profitability and market-breadth indicators do not guarantee future price performance.
FAQ
- What is altcoin season? A period when altcoins collectively outperform Bitcoin in market performance and capital inflows.
- Are most altcoin holders in profit? No, less than 25% of the median altcoin’s circulating supply is currently in profit.
- What does the Altcoin Season Index show? It measures broader market participation, registering 49 out of 100 on September 22.
- Why are breakeven levels important? They indicate when previously loss-making holders approach their original purchase prices, influencing potential selling pressure.
