TL;DR:
- The Total 2, Total 3, and OTHERS indexes posted new relative highs on September 7, 2026, after breaking downward trends lasting more than twelve months.
- Open interest in altcoin perpetual futures surpassed that of Bitcoin for the first time since December 2024, according to Coinalyze data.
- The combined market capitalization of assets outside the top ten cryptocurrencies stood at $213 billion, representing a 12% gain during the first week of September.
The altcoin market experienced a technical breakout across its primary tracking indicators during trading on Monday, September 7. This movement coincided with a rebound in trading volume and a rotation of liquidity reported by derivatives platforms.
All have confirmed an end to their year long+ downtrend by confirming higher-highs:
ETH
Total 2 (Alts outside of BTC)
Total 3 (Alts outside of BTC & ETH)
OTHERS (Alts outside the top 10)Just a "Bear Market rally" ?
— Matthew Hyland (@MatthewHyland_) September 7, 2026
The Total 2 and Total 3 indexes, along with the OTHERS metric, broke above their respective long-term downward trendlines by printing higher highs. According to a technical report posted on X by analyst Matthew Hyland, this price action on weekly charts could signal an upcoming phase of relative strength for mid- and low-cap assets. The observer noted that the market structure suggests the potential for a larger-scale bull cycle than the one seen between 2020 and 2021.
The Total 2 index excludes Bitcoin to gauge the performance of the broader sector, while Total 3 excludes both Bitcoin and Ethereum. Meanwhile, the OTHERS metric removes the top ten cryptocurrencies by market cap to track lower-tier tokens.
The ratio between the dominance of these smaller assets and the S&P 500 equity index (OTHERS.D/SPX) sits at historic lows following years of declines dating back to the 2017 cycle. Based on projections shared by Hyland, the technical oscillator on this chart entered an oversold zone between 20 and 30 points—a level the analyst compared to the overbought readings near 80 recorded in 2017.
Trading activity across derivatives markets signaled a trend reversal during the same session. Coinalyze data confirmed that open interest in alternative asset perpetual contracts overtook Bitcoin’s equivalent volume for the first time since December 2024.
Leverage Buildup Heightens Correction Risks
The valuation of tokens outside the top 10 reached $213 billion over the past 24 hours. This milestone represented an expansion of approximately 12% compared to levels recorded on the first day of September.
Zcash (ZEC) emerged as one of the standout movers, trading above $1,200 after surging 370% from its June 2026 lows. ZEC’s market capitalization surpassed the $20 billion mark, temporarily eclipsing Hyperliquid (HYPE) and Dogecoin (DOGE).
Over the same 24-hour window, Dogecoin gained 12% to reach $0.094, while Binance Coin (BNB) traded near $780, its highest level since February 2026.
The sharp rally sparked a swift buildup in leveraged positions. CoinGlass reported that open interest in Zcash futures climbed to $2.7 billion, while the surge triggered $24 million in forced liquidations, with $17 million coming from short positions.
Historically, sharp spikes in funding rates and open interest have preceded consolidation or pullback phases in mid-cap assets. Market reports caution that excessive leverage could trigger a sharp correction if spot buying volume fails to absorb existing liquidity levels.
Market participants now turn their focus to this week’s release of the U.S. Consumer Price Index (CPI), a key macroeconomic data point set to shape Federal Reserve interest rate expectations and drive liquidity conditions across crypto derivatives.
