Bitcoin and Ether rebounded despite the U.S. Senate’s failure to advance the CLARITY Act, a crypto market-structure bill, and a Federal Reserve rate increase, with gains spreading across the altcoin market.

294 of Top 300 Tokens Rise as Altcoins Stage Broad Rally

The altcoin market was effectively in a full-blown rally. Of the top 300 tokens by market capitalization, 294 rose and only six fell as of Sept. 23, according to CoinMarketCap. The simple average weekly gain across those tokens also exceeded 20%. While sharp jumps in some smaller tokens lifted the average, buying appeared to be spreading across the market.

Small- and mid-cap tokens led the gains. Bedrock (BR) jumped 393% over the past week, followed by Derive (DRV) at 174%, ZAMA at 108% and STONK at 105%. BR extended gains alongside a broader recovery in risk appetite despite the absence of a clear token-specific catalyst. ZAMA drew investor interest as privacy-related themes gained traction and after it recently expanded private DeFi vaults and private swap functions built on Morpho. STONK also advanced on broader trading support and expectations tied to tokenized stocks.

Large and upper-mid-cap altcoins rallied as well. NEAR rose 88.5%, Bitcoin Cash 63.5%, Uniswap 63.4%, Aptos 57%, Arbitrum 52.9% and Avalanche 52.6%. Buying in Bitcoin Cash and Uniswap strengthened after CME Group announced plans to launch futures tied to the two assets on Oct. 19, subject to regulatory review.

Token-specific technology and regulatory developments also supported the rally. NEAR attracted attention after applying privacy features by default from Sept. 17 in Hyperliquid-based perpetual futures trading, masking traders’ funding sources and account-link information. Aptos drew interest after adding a mainnet feature that allows transfer amounts to be processed privately. Arbitrum benefited after the U.S. Securities and Exchange Commission introduced an "Innovation Exemption" for on-chain trading of tokenized stocks, fueling expectations for broader related infrastructure. The SEC said tokenized securities venues that meet certain conditions will receive a five-year temporary exemption from the definition of "exchange" under securities law, allowing on-chain trading of tokenized U.S.-listed shares, or NMS stocks.

Major altcoins including Sui, up 47.8%, Jupiter, up 41.8%, Cardano, up 31.1%, XRP, up 24.1%, and Solana, up 21%, also posted double-digit gains. Solana ecosystem tokens such as Jupiter benefited from expectations for a bigger tokenized-stock market. Solana’s own rally was supported by spot exchange-traded fund inflows and expectations for ecosystem expansion. Over the same period, Bitcoin gained 13.2% and Ether rose 13.9%, underscoring the relative outperformance of major altcoins.

The recent altcoin rally reflects both a broader recovery in risk appetite and token-specific themes. Brian Huang, co-founder of on-chain asset management technology company Glider, said the altcoin market remains highly correlated with Bitcoin, while some names including VVV, Zcash and Uniswap are showing relative strength.

AI- and privacy-related themes are helping drive gains, Huang added. The SEC’s easing of tokenized-stock rules and CME’s plans to launch UNI and BCH futures are also acting as catalysts.

Altcoins Push Past Headwinds as Capital Rotation Gathers Pace

Analysts say the backdrop has turned more supportive for altcoins, though they caution that a sharp short-term run-up could bring heavier volatility.

Crypto market maker Wintermute said capital rotation into altcoins continued even after the market absorbed two major variables: the CLARITY Act vote and the Fed’s rate hike. Ether rose 6.7% last week and the broader altcoin market gained 4.8%, according to Wintermute, while Bitcoin ended the week at $81,159 and broke above the top of its recent range. Wintermute said that if Bitcoin extends its gains, Bitcoin dominance could rise again before capital spreads back into smaller altcoins.

Some analysts also say altcoins have recently been moving ahead of Bitcoin and leading the rally. Alex Kuptsikevich, chief analyst at FxPro, said the total crypto market capitalization climbed to $2.8 trillion, the highest since late January, and was up 6% from a week earlier. Altcoins are once again leading the latest advance, he said. Still, he added that while altcoin strength is increasing the odds of further gains in Bitcoin, the risk of a sharp correction remains, making confirmation of follow-through important.

Lower market volatility is also being cited as a supportive factor for altcoins. Huang said volatility gauges for both U.S. and South Korean equities have fallen to six-month lows, while Bitcoin’s rise has created a favorable backdrop for an altcoin rally. Investors should keep an eye on U.S. Treasury yields, he added. If yields fall, risk appetite could strengthen and capital may move into more volatile assets such as altcoins.

Some analysts interpret Tether’s declining market dominance as another sign of recovering risk appetite. Crypto analytics firm Swissblock said Tether dominance has slipped below the 7% range that held for most of 2026, reducing the relative share of defensive capital. Its risk index has also fallen to zero, creating a more favorable backdrop for fresh inflows. If Tether dominance stays below 7%, the broader spread of capital across the market could become more pronounced.

Kang Min-seung, Bloomingbit reporter minriver@bloomingbit.io