BNB Rallies: Which Altcoins Could Surge Next? | October Report

Key Takeaways:

• BNB overtook Ethereum in September, breaking above $1,000 for the first time and setting a new ATH at $1,079.
• Aster (ASTR) emerged as a strong contender in the perp DEX sector, with backing from CZ and a Tokenomics 3.0 proposal that could trigger a supply shock.
• Ethereum’s ecosystem remains resilient, with Layer 2 tokens like Arbitrum, Merlin Chain, Mantle, and Immutable showing strong performance despite the correction.
• The liquid staking and restaking sector is gaining traction, with EigenLayer and Ether.fi outperforming while Lido lagged, signaling selective growth.
• The altcoin season is unlikely to lift all tokens equally. Selective winners with strong fundamentals and institutional backing are more likely to lead.

September reminded the market that leadership among altcoins can change quickly. Ethereum (ETH), long ​​seen as the dominant force in the space, gave way to BNB as the token surged past $1,000 for the first time.

Meanwhile, new players like Aster (ASTR) began challenging Hyperliquid in the fast-growing perp DEX sector, with backing from Changpeng Zhao (CZ) adding fuel to the rivalry. But Ethereum hasn’t disappeared from the narrative. Its ecosystem continues to show strength through Layer 2 (L2) networks and the liquid (re)staking sector, both of which are shaping up as selective winners in this cycle.

This Cryptonews report explores what this means for the market in the months ahead and which altcoins may take the lead.

BNB’s Breakout Moment

For many, September brought an unexpected shift. Instead of Ethereum driving the market narrative, attention turned to BNB and its broader ecosystem. BNB broke above $1,000 for the first time ever, setting a new all-time high at $1,079.

Matas Čepulis, founder and CEO of LuvKaizen, points out that this rally is not only fueled by retail enthusiasm but also by institutional backing:

Interesting to see that retail traders keep on pushing BNB, but also heavyweights like Franklin Templeton partnering with Binance, along with corporate treasuries quietly stacking BNB, are giving this rally some real muscle. On top of that, Binance continues its quarterly token burns, reducing supply and adding even more fuel to the fire.

At the same time, market attention quickly shifted to perpetual decentralized exchanges (perp DEXs). The space was already in focus after Hyperliquid’s success, but the emergence of Aster added fuel to the competition. The project attracted even more attention when it received backing from Changpeng Zhao, leading some to call it a “Hyperliquid killer.”

Čepulis notes that Aster’s tokenomics may be the real game changer:

The plan introduces a fixed supply, shrinking emissions, and fee burns, essentially flipping ASTR from an inflationary token into a deflationary one. What makes this even more interesting is the strong backing Aster enjoys, with CZ himself showing support and the project benefiting from its ties to the BNB ecosystem. If the proposal goes through, ASTR could become one of the biggest supply shock plays of the season and could potentially even reach highs of Hyperliquid.

The story of BNB and Aster also reflects a broader market shift. Čepulis sees this shift as part of a bigger change in market dynamics:

All of this is happening with a larger Bitcoin dominance slippage. That shift is opening the door for altcoins to shine, and right now BNB looks like the frontrunner, though Aster may be quietly lining up to join the race.

Is It Time to Watch Layer 2 Coins Again?

Although Ethereum may have lost the spotlight to BNB in September, its ecosystem continues to show strength. This summer turned into a mini-season for Ethereum. Not only did ETH hit a new all-time high, but projects in its ecosystem followed.

Among the biggest movers were Layer 2 networks, often described as the “silent workhorses” of the blockchain because they handle much of the activity behind the scenes. One of the standouts was Arbitrum (ARB), which climbed from $0.26 to $0.61 between late June and August, a gain of more than 130%.

Now, both Ethereum and parts of its ecosystem have entered a correction after the rally. Still, interest in L2s remains strong. Joaquin Mendes, COO of Taiko, sees them as one of the most promising segments in the current market:

The real opportunity lies in select altcoins with strong fundamentals, particularly Ethereum Layer 2 scaling solutions, which continue to see growing adoption and could benefit from renewed interest in the scaling narrative.

According CoinGecko, In September, the top performers among L2 tokens came from across the industry: Merlin Chain (MERL), part of the Bitcoin ecosystem. Mantle (MNT), which has strong backing from the Babit exchange, and Immutable (IMX), focused on gaming and NFTs.

Their success shows that momentum in L2 tokens is not limited to Ethereum alone. At the same time, investors need to be cautious, since not every project in this space has strong fundamentals, a point Mendes himself emphasized.

According to Mendes, the recent market pullback could set the stage for healthier growth ahead:

The recent correction has cleared out overleveraged positions and created a more stable foundation for potential upward moves. Layer 2 tokens remain worth watching as the ecosystem matures and transaction volumes grow across these networks.

Liquid (Re)Staking: A Sleeping Giant in Altcoins?

Ethereum’s ecosystem growth, however, has not been uniform. The rally in L2s highlights one corner of strength, but other sectors show a more selective picture. The liquid staking and restaking segment is a clear example: some projects are rallying, while others remain under pressure.

This is particularly significant as it is one of the largest sectors in the entire Decentralized Finance (DeFi) landscape. Among the top 10 DeFi protocols, liquid staking and restaking command a dominant position, accounting for a substantial $83.6 billion in Total Value Locked (TVL) — representing 51.1% of the cumulative value locked in these leading projects.

According to CoinGecko, Ether.fi (ETHFI) rose more than 40% in September, while EigenCloud (EIGEN) gained 44.5%. By contrast, market leader Lido (LDO) fell by over 6%, and Babylon (BABY) stayed flat. This dispersion shows how capital in the Ethereum ecosystem is rotating toward newer narratives rather than lifting all boats.

David Dobrovitsky, CEO of Wowduck, notes that this sector is quickly becoming a key pillar of Ethereum’s next phase:

The liquid staking / restaking sector (EigenLayer, Lido) is emerging as a new trust and yield layer on Ethereum. Both stand to benefit from the growth of institutional DeFi and tokenized assets.

This trend underscores one of the defining features of the current cycle and the potential altcoin season ahead: growth is selective. Not every project will rally, but the ones aligned with new narratives and institutional adoption could continue to lead.

Don’t Expect All Altcoins to Rally

Altcoin leadership is no longer a given. September showed how quickly momentum can shift, with BNB overtaking Ethereum and new players like Aster drawing attention in the perp DEX space. At the same time, Ethereum’s ecosystem remains resilient through Layer 2 projects and the emerging liquid (re)staking sector. The next market phase may not lift all tokens equally, but selective growth signals that the coming altcoin season could be defined by stronger fundamentals and sharper competition.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice.

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