“Hot autumn”: why are altcoins rising?

Over the past 60 days, the ten largest altcoins have risen in price by tens of percent and are in the "green zone." The leading altcoin ETH by market capitalization has risen by more than 31% in the past month alone, while the next-largest altcoins, BNB and XRP, have risen by nearly 18% and 27%, respectively.

Why is altcoin growth happening?

Over the past two months, since the beginning of July 2026, altcoins have demonstrated steady growth. During this period, the total market capitalization of altcoins rose by more than 20%, from $888 billion to $1.06 trillion.

Along with market capitalization, the level of altcoin dominance* also increased. As a result, the dominance of the leading altcoin, ETH, rose by more than 22%, from 9.0% to 11%. The dominance of all other altcoins rose by nearly 10%, from 26.4% to 29%.

* Altcoin dominance is an indicator reflecting the share of altcoins' market capitalization in the total capitalization of the cryptocurrency market. For example, ETH dominance of 11% means Ethereum accounts for about 11% of the total value of crypto assets included in the indicator's calculation.

At the same time, despite altcoin growth, the Altcoin Season* Index* has been declining since the second half of August 2026. By early September, the indicator had fallen by half, from 50 to 25.

* Altseason or altcoin season is a period in the crypto market during which many major altcoins outperform the leading cryptocurrency, Bitcoin, in terms of growth.

* Altcoin Season Index is an indicator showing how broadly altcoins are outperforming Bitcoin in terms of returns. For example, CoinMarketCap compares the performance of the 100 largest eligible cryptocurrencies with Bitcoin over the previous 90 days, excluding stablecoins and certain tokens pegged to other assets. An index value of 75 or higher indicates an altseason: at least 75% of the cryptocurrencies included in the index performed better than Bitcoin during that period. At a value of 25 or below, CoinMarketCap defines the market condition as "Bitcoin Season".

One of the main drivers of altcoin growth is the strong performance of the leading cryptocurrency, Bitcoin. As a rule, altcoins rise after Bitcoin, which analysts often call an "indicator of the crypto market."

This is because investors typically buy Bitcoin first, as it is the most recognizable and liquid asset in the cryptocurrency market. Only afterward do altcoins begin to rise: ETH, XRP, BNB, and other highly liquid crypto assets.

The Bitcoin price has been rising since the beginning of July. Around the same time, other cryptocurrencies that are rising now also began showing positive momentum, according to CoinMarketCap data.

Analysts also link altcoin growth to capital flowing out of Bitcoin and into other cryptocurrencies. According to their observations, after a strong Bitcoin rally, investors begin taking profits and reallocating assets into liquid altcoins, driving even stronger price growth.

At the same time, experts note that capital flowing into altcoins does not necessarily mean that funds are being withdrawn from Bitcoin. As a rule, it only indicates a redistribution of part of the capital or profits generated from investments.

Another factor behind altcoin growth, according to analysts, is the positive outlook for the US Federal Reserve's key interest rate. Analysts expect the Fed to potentially ease monetary policy in the coming sessions, which could positively affect altcoin growth.

Experts also do not rule out speculative interest. In their view, the rise of altcoins alongside Bitcoin has restored positive market sentiment and investors' appetite for high-risk assets, including less liquid ones such as memecoins and other "hype" tokens.

This trend is reflected in the current crypto market landscape: the token of the popular memecoin launch platform Pump.fun (PUMP) has become the fastest-growing altcoin right now. Over the past 60 days, the PUMP altcoin has risen more than 185% and entered the top 50 cryptocurrencies by market capitalization.

Other speculative memecoins, such as Pepe (PEPE) and SPX6900 (SPX), also demonstrated substantial growth of 41% and 49%, respectively. At the same time, no fundamental market factors appear to be specifically supporting the growth of these altcoins.

Analysts also include growing institutional interest in the digital asset market among the general factors driving altcoin growth, not only from private investors but also from institutional investors such as pension funds and other investment funds. For example, in August 2026, spot ETF* funds based on the XRP cryptocurrency recorded a record weekly inflow of capital.

* ETF (Exchange-Traded Fund) is an investment fund whose units or shares are traded on an exchange and whose value depends on the price of the underlying asset or basket of assets to which it is linked. An ETF lets investors gain exposure to a particular market or asset — for example, stocks, bonds, gold, or cryptocurrency — without having to directly purchase and hold each asset.

The fastest-growing cryptocurrencies right now and the reasons behind their rise

The growth of certain altcoins may be linked to specific events and actions taken by the teams behind them. For example, the growth of the altcoin PUMP may have been driven by an update to the Pump.fun project's tokenomics*, under which the project team plans to "burn"*, meaning permanently remove from circulation, approximately 36% of the token supply.

* Tokenomics (from token and economics) is the set of economic principles and rules that determine how a token is structured and circulates within a crypto project. Tokenomics includes the total and maximum token supply, the way tokens are issued and distributed among the team, investors, and users, the unlocking schedule, token use cases, participant rewards, as well as mechanisms for reducing supply. Changes to tokenomics can affect a token's supply and demand and, consequently, its market value.

* Token burning is the permanent removal of a certain number of tokens from circulation. Usually, tokens are transferred to a special address whose funds cannot be accessed, or they are destroyed using a mechanism built into a smart contract. Burning reduces the available token supply and, if demand stays the same or increases, can boost its value. However, token burning alone does not guarantee a price increase.

Alongside the PUMP token, the fastest-growing cryptocurrencies right now among the top 100 digital assets include Ethena (ENA) and Zcash (ZEC), whose prices increased by 95% and 92%, respectively.

Factors behind the growth of the altcoin ENA may include the launch of a token buyback* program, for which part of the Ethena platform's revenue is expected to be allocated, as well as a $1 billion deal with FalconX that will allow the native USDe stablecoin to be used for institutional lending, providing the team with an additional source of revenue.

* Token buyback is a mechanism in which a crypto project uses its own funds to purchase tokens it has issued on the open market or through another designated method. For example, the project may use part of its revenue or profit for buybacks. Repurchased tokens may remain under the project's control or may subsequently be burned. A buyback creates additional demand for the token and, when combined with burning, also reduces its circulating supply, but it does not guarantee a higher market price.

The growth of the altcoin Zcash may be linked to statements by well-known investment company Grayscale Investments regarding plans to convert its Zcash Trust into a spot exchange-traded fund (ZEC ETF), amid growing institutional investor interest in privacy cryptocurrencies*.

* Privacy cryptocurrencies, or privacy coins, are cryptocurrencies that use special technologies to fully or partially conceal transaction information, such as the sender's and recipient's addresses or the amount transferred.

In addition, at the end of August, the company published a report stating that ZEC, one of the fastest-growing altcoins right now, is an undervalued asset. As of September 2026, Zcash had entered the top ten largest assets in the crypto market, overtaking Dogecoin (DOGE), Chainlink (LINK), and Cardano (ADA).

Rounding out the top five fastest-growing altcoins right now are Uniswap (UNI) and Lighter (LIT), which have risen in price by 81% and 78%, respectively, over the past two months.

The growth of leading exchange tokens is associated with improving performance among the decentralized exchanges themselves and increasing trading volumes. In addition, the growth of the altcoin LIT may be fueled by rumors that the Lighter exchange could receive a CFTC license.