Altcoin Season Builds as Most Holders Remain Underwater

What happened

Altcoin season is gaining momentum, but Glassnode data shows most altcoin holders remain underwater. As of September 23, less than 25% of the median altcoin's circulating supply was in profit, meaning recent gains have not yet translated into broad profitability.

Confirmed

Global impact / market context

If most altcoin holders are still underwater, which means their coins are worth less than they paid, many may sell once prices approach their purchase level to break even, potentially capping further gains and slowing the broader altcoin rally.

Analyst inference

This suggests the altcoin season is narrow rather than broad, with gains concentrated in certain coins while most remain below prior purchase prices. That divergence can shape investor positioning, as buyers may favor assets with fewer holders waiting to break even.

Analyst inference

What to watch

1. Watch whether the share of the median altcoin's circulating supply in profit rises above 25% after September 23, since that would show recent gains spreading more broadly across altcoins. Confirmed
2. Track whether altcoin season continues gaining momentum if profitability stays low, because that combination would suggest the rally depends on narrow leadership rather than widespread holder recovery. Proposed
3. Monitor whether holders who are underwater sell as prices near their purchase levels, since break-even selling could add supply and limit how far the altcoin rally extends. Analyst inference

Evidence

• thecoinrepublic.com