Smaller tokens are significantly outpacing major cryptocurrencies, with the CoinDesk 80 index rising approximately 3% over 24 hours, more than double the 1.2% gain posted by the CoinDesk 5. Bitcoin is trading below $83,500 after reaching above $84,000 on Sunday, while ether has added around 2.5% to trade near $2,560.
The rally in smaller-cap tokens is occurring in the thinnest part of the market. Research from CoinDesk shows that while order-book depth for bitcoin and ether has recovered to pre-crash levels since the October 2025 flash crash, altcoin liquidity has continued to erode. Market makers have returned to major cryptocurrencies, concentrating liquidity there rather than in alternative tokens.
Institutional demand for bitcoin has softened, with U.S.-listed spot bitcoin ETFs recording $681 million in net outflows last week—the largest weekly outflow since June. Most selling occurred on Wednesday and Thursday, ahead of expected economic data. Spot ether ETFs have not experienced inflows since September 28, marking a nine-day streak of outflows that extends back to June.
Derivatives Activity
Futures trading volume has surged 81% to $126 billion over 24 hours, but open interest has risen only 2.44% to $145.8 billion, indicating traders are rotating positions rather than building new leverage. Long positions now account for 52% of taker flow, up from 48% last week, suggesting a shift toward buyer dominance.
Bitcoin and ether leverage demand remains subdued, with open interest barely changing and sitting well below peaks from early in the year. Implied volatility indexes for both assets are struggling to move above 40%, indicating options traders are not pricing in significant near-term price swings.
Notable Token Movements
Starknet has risen 76% over the past week following discussion of the network potentially leaving Ethereum to become a standalone layer-1 blockchain. LayerZero gained 21% over 24 hours to reach $2.41, its highest level since May 2025, as its market capitalization approached $1 billion.
Zcash has climbed amid activity related to the Ledger reseller supply-chain attack, in which stolen ether was routed through mixing services and then into ZEC via other protocols. Losses from devices sold by Malaysian reseller CryptoBilis are estimated between $86 million and $93 million.
CoinMarketCap's Altcoin Season indicator stands at 66 out of 100, its highest level in over a year, as traders increase speculative bets while bitcoin consolidates between $80,000 and $88,000.
