Altseason Is Coming and Traders Are Pickier This Time — Why Revenue-Printing Coins Are Leading the Rotation

Altseason is not officially here yet, but the early rotation has started — and this time traders are picking coins with actual revenue instead of chasing every meme in sight, according to a Cointelegraph Magazine analysis published Sept. 28.

By Diego Rivera | September 28, 2026

The numbers behind the shift are getting hard to ignore. Over the past 30 days, memecoin launchpad PONS soared more than 350 percent, Uniswap’s UNI gained more than 110 percent, Arbitrum’s ARB jumped over 150 percent and AI-focused NEAR shot up around 180 percent, according to CoinMarketCap data cited in the report. Privacy token Zcash hit a record high above 1,600 USD last week. Bitcoin Layer-2 token LIT and launchpad token PUMP also ranked among the biggest gainers. For regular investors, the pattern matters because it hints at where the next wave of money may flow — and it looks different from the last cycle’s everything-rally.

The Hook: The Altcoin Index Is Climbing Toward the Magic Number

CoinMarketCap’s official Altcoin Season Index currently sits at 64 out of 100, up from 48 last week — but still below the 75 threshold that marks an official altcoin season. In plain terms: the index compares how many altcoins are beating Bitcoin. A reading of 75 or higher means most altcoins are outperforming. At 64, the market is approaching that line without crossing it, which historically is the stage where rotations begin in earnest.

What makes this run notable is what traders are buying. Among the top 20 biggest gainers last week, only two were memecoins — a sharp contrast with past cycles when dog-themed tokens dominated leaderboards. Bankless podcast host David Hoffman pointed to the common thread among leaders like ARB, UNI, Jupiter’s JUP and Ondo’s ONDO: “They make money, they all print revenue.” His suggestion is that the rally could be driven by utility rather than pure speculation.

The Evidence: Breadth Before Depth

Sergej Kunz, co-founder of 1inch, describes the current pattern as “breadth before depth” — more wallets buying a broader range of tokens, but generally in smaller amounts. “The caution in the data fits the broader pattern of selective participation,” he told Cointelegraph Magazine, noting users are participating selectively rather than going all-in. Kunz also cautions that memecoins have still shown the strongest growth among buyers over the last 30 days, alongside DeFi protocols, privacy tokens, AI projects and tokenized assets.

Trading firm Talos adds structural context:

• Top 10 altcoins now account for roughly 80 percent of total altcoin market capitalization, up from about 70 percent at the end of 2024
• Dealer participation in altcoin trading has fallen from around 65 percent at the end of 2024 to about 32 percent in September
• September flows show a “notably strong buying tilt,” with buying dominating on almost every trading day

Samar Sen, head of international markets at Talos, says the data points to a market where capital is clustering around a smaller number of assets rather than rotating broadly into the long tail. That contrasts with late 2024, when the post-election rally produced broader outperformance across tokens including DOGE, ADA and HBAR.

The Core Conflict: Fundamentals or Just Fewer Bets?

Not everyone agrees this is a fundamentals-driven market. The strongest recent performances cluster around specific themes — revenue-generating protocols, on-chain perpetuals and DeFi projects like HYPE, LIT, UNI and MORPHO, privacy assets like ZEC and XMR, and AI-adjacent tokens like VVV and TAO. But memecoin launchpads PUMP and PONS are also surging, and unusual Robinhood trading pairs — tokenized stocks traded against memecoins — generated more than 425 million USD in 24-hour volume in early September on a single pairing.

Curve Finance and Yield Basis founder Michael Egorov sees genuinely new demand forming around protocols that “actually do something useful, can connect crypto with real financial activity, and prove it in action.” Stablecoins used in on-chain foreign exchange and fintech are his prime example, and he believes the biggest driver ahead will be crypto infrastructure integrating with the real economy. That is a bigger “if” than it sounds — it requires demand from outside crypto trading itself.

Market Implications: What This Means for Your Portfolio

For everyday investors, the practical read is about selectivity. If the top 10 altcoins are absorbing 80 percent of the market’s value and market makers are playing a smaller role than in 2024, the “everything pumps” altseason many remember may not repeat. Coins with revenue, real usage or strong narratives have been leading; coins without them have lagged.

Access has also widened. Exposure that once required using decentralized venues like Raydium or Orca is now available through mainstream platforms, which Talos says lowers barriers to entry and broadens retail participation. Easier access cuts both ways — it brings new buyers in, but it also means the crowd can rotate out just as quickly.

Bitcoin, meanwhile, trades near 83,700 USD, and the broader market backdrop remains sensitive to macro headlines. An altcoin rotation does not require Bitcoin to fall — but index readings like these usually move fastest when Bitcoin stagnates while large caps catch up.

The Verdict

The Altcoin Season Index at 64 — rising but short of 75 — describes a market warming up, not one that has arrived. The evidence suggests a more discerning crowd: fewer memecoins among the leaders, capital concentrated in fewer assets, and revenue-generating protocols setting the tone. Whether that discipline holds once the index crosses 75 is the real test. Investors should treat the current move as a rotation in progress and size positions accordingly — the data says participants are being selective, and there is little evidence that blind diversification will be rewarded this cycle.

The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.