TLDR
- Altcoin market cap (Total2) rose about $215 billion, close to 24%, between August 19 and 22, pushing it back above $1 trillion.
- 56% of Binance-listed altcoins now trade above their 200-day moving average, up from around 15-20% in November.
- The shift followed Donald Trump’s August 19 comments backing a US Bitcoin purchase and the CLARITY Act.
- The correlation between Bitcoin and altcoins hit 0.87, the highest reading since June 2026.
- Crypto ETFs tracking altcoins pulled in near $90 million in net inflows for the week ending August 21.
The crypto market showed signs of recovery this week, with altcoins leading the move.
Analysts pointed to a sharp rise in the value of coins outside Bitcoin and Ethereum, known as Total2.
Between August 19 and 22, Total2 grew by about $215 billion. That is close to a 24% increase in three days.
The gain pushed Total2 back above $1 trillion for the first time in weeks.
Mid cap and small cap coins rose the fastest during this stretch, according to CryptoQuant analyst Darkfost.
Altcoins Climb Above Key Price Level
One signal analysts watch is the 200 day moving average, or 200 DMA. Coins trading above this level are seen as holding a longer term uptrend.
Back in November, around 80% to 85% of altcoins listed on Binance were trading below their 200 DMA.
That picture has changed. As of this week, about 56% of those altcoins are trading above the 200 DMA.
This means more than half of the altcoins tracked are now showing a bullish long term structure.
A separate analyst tracked the 14 day average correlation between Bitcoin and altcoins. That number rose to 0.87, the highest reading since June 2026.
Trump Comments Spark The Shift
The turnaround began after comments from Donald Trump on August 19.
Trump said he supports the United States buying large amounts of Bitcoin.
He also called on Congress to pass the CLARITY Act, a bill aimed at setting clear rules for digital assets.
Trump said his administration had ended what he called the government’s previous war on crypto.
Wall Street also joined the move. Crypto ETFs tracking altcoins brought in close to $90 million in net inflows during the week ending August 21.
XRP led those inflows with $39.78 million, followed by Solana with $28.34 million.
Chainlink brought in $13.35 million, while Hyperliquid added $3.89 million.
Not every analyst agrees that altcoins are ready to take over from Bitcoin just yet.
One trader said Bitcoin dominance, a measure of Bitcoin’s share of the total crypto market, could still climb higher.
In that case, some altcoins may rise in price but still lag behind Bitcoin’s gains.
The trader said this could set up a bigger move later. Once Bitcoin dominance peaks and starts to fall, money could shift more heavily into altcoins.
Coinglass data adds a note of caution. Its Altcoin Season Index stood at just 46 this week, a level that does not yet point to a full altseason.
Back in May, several traders predicted 2026 would bring the biggest altcoin season since 2021.
So far, the market has not matched that forecast.
