Recent data from on-chain analytics platforms like Santiment, CryptoQuant, and Nansen indicate a worrying trend. Chainlink (LINK), XRP, and Aster (ASTER) are experiencing a significant increase in altcoin supply on exchanges. This movement follows a $300 billion correction in the altcoin market this October.
Santiment’s analysis shows that Chainlink’s (LINK) supply on exchanges grew from 171 million to 182 million tokens in the last week. Meanwhile, CryptoQuant data reveals that XRP reserves on the Upbit exchange exceeded 6.1 billion, a high not seen in 2025. Finally, Nansen reports that Aster’s (ASTER) supply on exchange platforms increased by 30% in seven days, reaching 875 million tokens.
This increase in altcoin supply on exchanges is relevant because it breaks previous trends. LINK, for example, enjoyed a bullish third quarter while its exchange reserves were falling. Now, the situation has sharply reversed. The case of XRP on Upbit is critical, as this exchange dominates Korean liquidity and shows a historical inverse correlation: more reserves, lower price. Aster is suffering the most dramatic fall, with a 50% plunge in its price coinciding with the flight of tokens. The economy of Perps DEX tokens seems to be cooling off.
Market sentiment appears to outweigh positive news. Despite S&P Global announcing an initiative with Chainlink, LINK’s price has fallen 27% this month. In the current climate of “extreme fear,” this additional supply translates directly into selling pressure. For ASTER, the situation is complicated by a 90% drop in its DEX’s trading volume, signaling a cooldown in the sector. Even its listing on Robinhood could not stop the decline.
Will the Capital Rotation Out of Altcoins Intensify?
The convergence of these factors suggests that investors are taking profits. Additional reports indicate that whales and “smart money” are also reducing their exposure to XRP. This simultaneous movement in key assets could signal a capital rotation away from the altcoin market during October. Investors must watch if this selling pressure intensifies in the coming weeks, as an accumulation of supply on exchanges often precedes deeper price corrections.
