Altcoin market shows gradual recovery signs despite macro headwinds, says analyst

The altcoin market is showing signs of a gradual recovery despite ongoing macroeconomic pressures, according to on-chain analyst Darkfost. In a post on X, he noted that the market is rebounding even as factors like the U.S.-Iran conflict and related inflation fears remain a burden. This movement follows a correction of over 50% in the altcoin market. Darkfost suggested that a key factor has been a dilution effect, with 46% of the approximately 51 million existing altcoins concentrated on Solana (SOL), 36% on Base (BASE), and 10% on BNB Smart Chain (BNB). The market was also impacted by Bitcoin's decline. However, the analyst explained that sentiment is changing. The performance of altcoins listed on Binance has recovered to its highest level since September 2025. Additionally, about 21% of these altcoins have reclaimed their 200-day moving average, a key technical indicator. He described this as a positive signal that investor interest in altcoins is gradually returning.