Surge in New Altcoins Impacts Crypto Market Dynamics
The influx of altcoins has raised questions about the end of the "altcoin season" era. Historically, altcoin seasons witnessed significant rallies for non-Bitcoin cryptocurrencies. During the 2017-2018 cycle, Ethereum (ETH), XRP, and Litecoin experienced substantial growth.
However, with over 36.4 million altcoins in circulation, market dynamics have shifted compared to previous altcoin seasons, which featured just thousands of coins.
Analyst Ali Martinez emphasizes the challenge in sustaining altcoin seasons due to the vast number of coins. Dune Analytics data shows a staggering increase in altcoin supply, from around 3,000 in 2017-2018 to under 500 in 2013-2014.
Economist Alex Krüger echoes these concerns, stating that token oversupply outpaces demand. This suggests that the idea of all altcoins rising in value for an extended period is no longer realistic. Krüger predicts future altcoin seasons to be short-lived, lasting weeks at most.
The overabundance of altcoins also complicates investor selection. Crypto trader Ash Crypto criticizes exchanges for listing meme coins to attract users, leading to retail investor losses as these coins quickly lose value.
Despite the challenges, analysts still see potential in specific altcoins with strong use cases. Michaël van de Poppe suggests that institutional interest in utility-driven coins may keep them relevant. He highlights Ethereum as a potential leader, calling it "the most hated rally of 2025."
Bitcoin maintains its market dominance, with a market cap exceeding $2.07 trillion. The total altcoin market cap stands at $1.6 trillion, 15.8% below its peak. CryptoQuant CEO Ki Young Ju predicts only a handful of altcoins with strong use cases will survive. As the crypto market matures, projects with genuine value are likely to remain relevant in the long term.