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For years, cryptocurrency investors have followed an almost immutable rule: when Bitcoin takes off, altcoins will eventually explode. This phenomenon, called altseason, has long shaped market cycles. However, this pattern may be a thing of the past. The explosion of the number of tokens and the redistribution of capital disrupts the balance of the market. Some industry leaders are now talking about shorter cycles and brutal rotations. Is the altseason disappearing?
In short
- The crypto market could enter a new phase where traditional cycles dominated by altseasons will become rare and unpredictable.
- The explosion in the number of tokens, now over 37.8 million, weakens liquidity and weakens the ability of altcoins to experience large-scale increases.
- The market capitalization of altcoins has fallen significantly in recent months, with many projects nearing their all-time lows.
- This market transformation could encourage shorter cycles and rapid rotations between sectors, redefining the dynamics of altcoins.
Token explosion weakens altcoin momentum
According to several analysts, despite its recovery, the crypto market is undergoing a structural mutation related to the explosion in the number of projects. More than 37.8 million tokens are now listed on CoinMarketCap, a level that severely dilutes the available liquidity to support large-scale altcoin rallies.
In this context, Andrei Grachev, co-founder of DWF Labs, believes that historical momentum could disappear. He explains that the market is entering a marked phase “shorter cycles and violent rotations between stories”.
Recent data illustrates the pressure on the altcoin segment:
- The total market cap of altcoins has fallen by roughly $209 billion over the course of thirteen months;
- After a market correction, it fell from around $1.19 trillion in October 2025 to nearly $719 billion;
- According to CryptoQuant analyst Darkfrost, 38% of altcoins are currently near their all-time lows.
These numbers reflect a fragmented market where liquidity is spread across more and more projects, making it much more difficult to sustain large-scale rallies.
The arrival of institutional capital is a game changer in the crypto world
With the massive arrival of institutional players, the structure of financial flows is also evolving. A growing share of capital is now channeled into Bitcoin, Ether and tokenized real-world asset (RWA) assets.
This reorientation can also be seen on the side of regulated financial products. Bitcoin ETFs have registered several consecutive days of net inflows, while altcoin-related products have tended to see capital outflows.
This development strengthens the concentration of liquidity in the market’s dominant assets. Altcoins now have to compete not only with each other, but also with institutional investment vehicles that capture a significant share of available capital. Analysts thus describe a market where performance will no longer be widespread, but will be more linked to specific sector narratives.
This transformation could permanently redefine cryptocycles. Instead of a massive altseason driving the entire market, the future could revolve around targeted rallies on certain themes or technologies, with capital quickly rotating between sectors. For investors, understanding these new dynamics could become as crucial as anticipating Bitcoin’s own cycles.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.
