Altcoin Influx into Exchanges Raises Potential Sell Pressure Risks

September’s altcoin surge has entered a more fragile phase with a sharp increase in assets being moved to exchanges. CryptoQuant data indicates that altcoin deposit transactions have risen by approximately 160% in two weeks. This trend suggests that investors might be gearing up for profit-taking after a strong rally.

Significant Jump in Exchange Deposits

The seven-day count of altcoin deposits jumped from 29,800 on September 14 to approximately 78,000 by September 28, reaching the highest level since October 2025. During the same period, the number of addresses executing deposit transactions climbed from 17,600 to about 51,600. This broad-based increase indicates that the inflow is not just from a few large wallets but a more extensive investor base.

CryptoQuant interprets the sharp increase in altcoin flow into exchanges as a signal that market sell pressure could be mounting.

While transferring tokens to centralized exchanges doesn’t guarantee sales, it does make assets more liquid and can quickly magnify price pressures. The rise in investors with strong returns in recent weeks makes potential profit realization more visible.

Short-term Pressure Evident for NEAR, XLM, and XRP

Among the altcoins benefiting most from the recent surge were NEAR, XLM, and XRP. NEAR rose by about 21.7% over the past week, trading around $5.29. XLM increased by approximately 9.9% weekly, stabilizing at $0.2236. Meanwhile, XRP, following a robust September performance, was trading at $1.48.

However, the momentum has not persisted uniformly across the market. In the last 24 hours, NEAR fell by approximately 2.9%, XLM by 1.5%, and XRP by 1.2%. While the weekly outlook remains strong, signs of short-term weakening have become more prominent.

The increased number of profitable investors, coupled with growing exchange inflows, significantly heightens distribution risk.

Bitcoin’s Slowdown Adds to Market Tensions

The broader market outlook also supports a cautious stance. According to CryptoQuant, Bitcoin‘s spot demand contracted by about 170,000 BTC over 30 days, while speculative demand in futures markets declined by approximately 90% between September 14 and 29. Investors who recently acquired Bitcoin report an average unrealized profit of around 33%.

These metrics do not conclusively end the rally for NEAR, XLM, and XRP. However, high prices, widespread investor profits, and the most substantial altcoin inflows to exchanges in nearly a year combine to strengthen the prospect of additional selling pressure in the market. Whether or not demand can counterbalance these inflows will be the determining factor moving forward.