Is the Crypto Market Topping Out? Key Signals to Watch
The crypto market is heating up as bullish momentum sweeps across altcoins, raising questions about the sustainability of the rally. Santiment founder Maksim has analyzed social sentiment, on-chain metrics, and DeFi activity to identify potential warning signs.
Mentions of "alt season" exceeding 1% of crypto discussions often signal retail euphoria peaking. Social divergence—where prices rise while interest fades—suggests excitement may be drying up. Cross-platform analysis reveals that spikes in 4chan chatter alongside fading Twitter interest typically precede market climaxes.
DeFi borrowing activity is another red flag, with USDC yields on Compound hitting 11%. Historically, yields nearing 20% have marked periods of speculative excess and reversals.
