The domination of bitcoin reaches record levels, questioning the future of altcoins. Does the Altseason belong to the past? Analysis of a changing market.
Bitcoin absorbs all liquidity
Bitcoin today captures 61.6 % of the total capitalization of the Crypto market. A level never reached for several years! On February 3, 2025, the domination of the BTC even reached 64.3 %. According to Crypto experts, this is a sign of an increasing concentration of capital on the safest digital asset in the sector.
Historically, the cryptocurrency market worked according to a well -known cycle of crypto investors. After a rise in the BTC, the profits were transferred to the Altcoins. What promote an explosion of value! This rotation of capital therefore allowed the emergence of new crypto-active. Upstream, she fueled the famous Altsseason.
But this mechanism seems to be blocked today. Indeed, the introduction of Bitcoin ETF has profoundly changed the situation by attracting an important part of the institutional funds. Concretely, these new digital assets isolate crypto liquidity. This prevents the capital from redistributing itself to altcoins.
The consequence is clear: a market where Bitcoin grabs the majority of investments to the detriment of other cryptocurrencies.
The explosion of tokens: a saturated and illiquid market
THE cryptocurrency market has never been so fragmented.
- THE Crypto analysts have more than 12.7 million different digital assets (other than Bitcoin) on March 15, 2025, against less than 11 million in February.
- In January alone, more than 600,000 new crypto tokens were launched. Most of them are the same and low -market market capitalization.
This overabundance poses a major problem: too many projects, not enough crypto liquidity. Many of these new tokens fail quickly and stagnate on the market.
In this sense, analyst Jesse Myers explained:
“When a token dies, he does not fall to zero. It remains blocked between $ 10,000 and $ 100,000 in capitalization, preventing the reallocation of funds. »»
This saturation even worries the large crypto exchange platforms. The CEO of Coinbase Brian Armstrong plans, for example, to reform the tokens rating process to adapt to this explosion of digital assets.
These data reveal an important fact: the crypto market is changing. If the Altseason seems over in its traditional form, a new balance could emerge. It remains to be seen if Altcoins will manage to regain their attractiveness in the face of a more dominant bitcoin than ever!
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
