While Bitcoin is strengthening its dominant position on the markets, the Kaiko Research report upsets expectations for 2025: forget the generalized altseason of formerly, only some carefully selected altcoins will be fabricated this year.
The Altcoin market enters a strategic selectivity phase
Investors in cryptocurrencies could have to adjust their strategies in 2025. According to a report published in March 2025 by Kaiko Research in collaboration with Blockhead Research, the era of generalized increases in Altcoins fades for the benefit of a more selective approach.
This significant change is explained by the evolution of liquidity trends, the intensification of regulatory pressures and the expansion of the institutional footprint of Bitcoin.
The concentration of the altcoin market reaches historical heights. THE data reveal that the first 10 altcoins now represent 64% of the total volume of exchanges, compared to only 32% at the end of 2021.
This centralization has accelerated since the last American elections, creating an environment where certain large capitalizations such as Solana (soil) and XRP are growing, while small and medium capitalization tokens have dropped by more than 30% since the start of the year.
The Altcoin Season index index of Blockchaincenter.net confirms this trend with a score of 20, far from the 75 threshold necessary to declare a real season of altcoins.
Concretely, this means that only 10 cryptocurrencies among the first 50 have surpassed Bitcoin performance in the last three months.
Macroeconomic factors unfavorable to altcoins
The global economic context further complicates the situation for altcoins. The increase in interest rates and the reduction of liquidity by central banks have considerably slowed down the appetite for risky assets.
This climate contrasts strongly with accommodating monetary policies that had fueled the boom of 2021.
Bitcoin, on the other hand, has benefited from the approval of the negotiated funds on the stock market (ETF) in cash in the United States, attracting more than a billion dollars in volume of transactions from the first day.
This institutional legitimization has strengthened its dominant position, to the detriment of altcoins which face increased competition to attract capital.
The American political uncertainty index, now at record levels from the Cavid-19 pandemic, also pushed investors to the perceived stability of Bitcoin.
This search for refuge value partly explains the low activity on Altcoin networks, a phenomenon already underlined in our previous article: Crypto: why does the Altseason are slow to start?
A new era for Crypto investors
The Kaiko Research report concludes that the traditional period of uniform increase in altcoins could be replaced by a phase of “selection strategic. »»
In this new paradigm, the success of an altcoin will mainly depend on three key factors:
- The depth of its liquidity
- The institutional support he receives
- Its measurable adoption
This development marks a decisive turning point for Crypto investors, who will now have to favor precision in the composition of their portfolios rather than all -out diversification.
Fragile projects or without real utility are likely to be ruled out in favor of stronger and better positioned alternatives to attract institutional investments. The recent collapse of 99% of the same on Pump. Fun perfectly illustrates this new selectivity of the market.
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