For years, crypto investors have followed an almost immutable rule: when bitcoin soars, altcoins eventually explode in turn. This phenomenon, called altseason, has long punctuated market cycles. However, this pattern could be a thing of the past. The explosion in the number of tokens and the redistribution of capital are disrupting the market balance. Some industry executives are now talking about shorter cycles and sharp rotations. Is the altseason dying out?
In brief
- The crypto market could enter a new phase where traditional cycles, dominated by altseasons, become rarer and unpredictable.
- The explosion in the number of tokens, now above 37.8 million, dilutes liquidity and weakens the ability of altcoins to experience widespread increases.
- The capitalization of altcoins has declined sharply in recent months, with a significant portion of projects close to their historic lows.
- This market transformation could favor shorter cycles and rapid rotations between sectors, redefining the dynamics of altcoins.
The explosion of tokens weakens the dynamics of altcoins
According to several analysts, the crypto market, despite its recovery, is going through a structural change linked to the explosion in the number of projects. More than 37.8 million tokens are now listed on CoinMarketCap, a level that greatly dilutes the liquidity available to support widespread altcoin rallies.
In this context, Andrei Grachev, co-founder of DWF Labs, believes that the historical dynamic could disappear. He explain that the market is entering a phase marked by “shorter cycles and violent rotations between narratives”.
Recent data illustrates the pressure weighing on the altcoin segment:
- The total capitalization of altcoins has fallen by approximately $209 billion in thirteen months;
- It increased from around $1.19 trillion in October 2025 to almost $719 billion after the market correction;
- According to CryptoQuant analyst Darkfost, 38% of altcoins are now near their all-time lows.
These figures reflect a fragmented market where liquidity is dispersed among an ever-increasing number of projects, making widespread rallies much more difficult to sustain.
The arrival of institutional capital is a game-changer in the crypto universe
At the same time, the structure of financial flows is evolving with the massive arrival of institutional players. A growing share of capital is now flowing into bitcoin, ether, and tokenized assets tied to real-world assets (RWA).
This reorientation is also observed in regulated financial products. Bitcoin ETFs are recording several consecutive days of net inflows, while altcoin-related products have seen capital outflows.
This development reinforces the concentration of liquidity on dominant market assets. Altcoins now have to compete not only with each other, but also with institutional investment instruments that capture a significant portion of the available capital. Analysts thus evoke a market where performances will no longer be generalized, but more linked to specific sectoral stories.
This transformation could permanently redefine crypto cycles. Instead of a massive altseason propelling the entire market, the future could play out around targeted rallies on certain themes or technologies, with rapid rotations of capital between sectors. For investors, understanding these new dynamics could become as crucial as anticipating the cycles of bitcoin itself.
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