The explosion in the number of altcoins is worrying crypto market experts. With more than 36.4 million tokens in circulation today, compared to only 3,000 in 2017-2018, the question of the viability of a new altseason arises acutely.
The abundance of tokens, a challenge for altcoins
The crypto market is facing an unprecedented situation: more than 36.4 million tokens are now in circulation, compared to only 3,000 in 2017-2018, reveals Dune Analytics. This explosion in supply is disrupting traditional market dynamics.
Analyst Ali Martinez underlines this radical change: With such an abundance of tokens, it becomes unlikely to see all altcoins perform simultaneously as in the past. » Indeed, the days when Ethereum, XRP and Litecoin recorded spectacular gains seem to be over.
Alex Krüger, renowned economist, confirms this analysis: “ The market is saturated. Supply far exceeds demand. » He now anticipates shorter periods of rise for altcoins, not exceeding a few weeks.
Increased selection, towards more robust survival
The abundance of projects makes the selection of altcoins particularly complex. As Alex Krüger explains, choosing promising tokens is now akin to selecting the right stocks on the stock market. This difficulty is amplified by the proliferation of memecoins, often put forward by Exchanges with a profit motive.
However, some experts remain optimistic. Michaël van de Poppe predicts that utility tokens, supported by solid use cases, will attract the attention of institutions. According to him, Ethereum could lead the next rally thanks to its multiple applications.
Ki Young Ju, CEO of CryptoQuant, shares this opinion: only robust projects will survive, while the others will be eclipsed by leaders like Bitcoin, whose capitalization has doubled since 2021.
The excess of tokens marks a turning point for the crypto market. Extended altseasons now seem unlikely, but the rise of utility tokens and growing institutional interest could redefine the ecosystem. The key lies in wise asset selection as competition intensifies.
The altcoin market is entering a critical phase. If the plethora of supply weakens the altseasons, wise investors could concentrate on solid and proven projects. In this saturated environment, identifying long-term opportunities will be essential. Crypto evolves, and with it, its cycles.
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