By the third week of August, several altcoins experienced a sharp drop in exchange reserves. This trend reflects growing demand for accumulation and off-exchange holding. The shift is especially notable as the so-called altcoin season has become increasingly selective.
Which tokens are seeing this surge in accumulation, and what factors drive investor optimism?
1. Ethena (ENA)
Data from Santiment shows that Ethena (ENA) exchange reserves fell from 1.3 billion to 1.15 billion during the third week of August. In other words, 150 million ENA left centralized exchanges.
This happened while ENA’s price surged 30% in August, climbing from $0.51 to $0.65.
The reserve drop coincided with the Ethena Foundation announcing a $260 million buyback program. The plan allocates around $5 million daily to repurchase ENA from the market.
Tokenomist estimates the buyback could remove 3.48% of the circulating supply. This absorption of sell pressure boosts long-term investor confidence.
In addition, Ethena crossed major milestones in August. Revenue surpassed $500 million, while USDe supply reached a record high of $11.7 billion.
Together, these drivers fueled ENA accumulation and exchange reserve declines.
2. BIO Protocol (BIO)
BIO Protocol, a leading project in the DeSci sector, delivered an exceptional performance in August with gains of over 265%.
Alongside the price rally, exchange reserves fell sharply. From early August to now, reserves dropped from 380 million to 294 million BIO — a more than 22% decline.
The third week of August saw the most dramatic movement. Investors withdrew 42 million BIO in just one week, pushing exchange reserves to their lowest level this year.
Several catalysts explain this accumulation wave. BIO launched a staking program early in August that attracted over 25 million tokens. Additionally, Arthur Hayes invested $1 million into BIO this week, reigniting market attention.
Bio Protocol also rolled out a new way to reach new investors. Users are asked to discuss the project on social media to earn BioXP, which gives them access to the first BioAgent sales.
These factors combined to boost visibility, attract new investors, and accelerate accumulation.
3. API3
API3, an oracle-focused project, regained investor interest in August, sending its price up more than 130%. At the same time, exchange reserves fell to their lowest point this year.
The third week of August marked a turning point. Over 9 million API3 were withdrawn from exchanges, reducing exchange supply to just 17.19 million.
The catalyst was Upbit’s listing of API3. According to the BeInCrypto report, the token’s price jumped over 120% immediately after the listing.
Investor focus on the Oracle sector also increased due to Chainlink’s (LINK) rally. LINK’s strong performance in the past month spilled over into related projects. Data from Artemis confirmed Oracle was the market’s best-performing sector in August.
The surge in API3 accumulation has kept its price trading steady at above $1.50.
These three altcoins highlight different drivers behind August’s selective altcoin rally. While a broad-based altcoin season has yet to emerge, projects with unique catalysts — whether buyback programs, staking incentives, or an exchange listing — are attracting investor attention and capital.
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