Conventional altcoin cycles, which featured broad market rallies known as “altseason,” are actually a relic of the previous as new crypto market dynamics set in, based on Andrei Grachev, Managing Associate of DWF Labs, a crypto market maker and funding agency.
Too many tokens competing for restricted capital and mindshare, a smaller variety of market individuals, and crypto exchange-traded funds (ETFs) altering market dynamics by trapping liquidity are driving elements of the disruption, Grachev informed Cointelegraph.
An institutional give attention to large-cap digital belongings like Bitcoin (BTC), Ether (ETH) and tokenized real-world belongings (RWAs) can be diverting capital and a focus away from altcoins, he mentioned.
“The lengthy tail of tokens will nonetheless exist, however will largely operate as high-risk enterprise or casino-style performs. The capital is just not going to maintain increasing quick sufficient to help all of it,” Grachev mentioned. He added:
“Meaning shorter narrative home windows, extra violent rotations, and fewer room for weak tasks to outlive on hype alone. The market is transferring away from broad altcoin rallies and towards extra selective strikes in particular sectors.”
Matt Hougan, the chief funding officer at funding agency Bitwise, additionally mentioned traditional altcoin cycles are over, and that institutional buyers are centered on yield-bearing digital devices or crypto belongings that seize income.
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The altcoin market cap has taken a beating because the October 2025 market crash
38% of altcoins are near all-time lows, based on CryptoQuant analyst Darkfost, who mentioned that is worse than the post-FTX market crash.
“Liquidity is changing into more and more diluted by the rising variety of tasks and tokens coming into the market,” he informed Cointelegraph.
Over $209 billion has exited the altcoin market during the last 13 months. The altcoin market cap briefly tapped a excessive of $1.19 trillion in October 2025, earlier than the market crash dragged it again all the way down to about $719 billion.
In the meantime, inflows into Bitcoin ETFs stay sturdy, with 5 days of constructive inflows, based on data from fund supervisor Farside Buyers, whereas altcoin ETFs continue to experience outflows.
Journal: Altcoin season 2025 is almost here… but the rules have changed
