Altseason, the period when altcoins annually experience a significant surge, doesn't seem to be commencing yet. While the market appears to be continuously expanding, with numerous new projects and exchanges, investors' focus is notably shifting. Despite over 100,000 trading pairs and more than 800 active exchanges, altcoin dominance has decreased to 27%. Simultaneously, Bitcoin [BTC] and stablecoins now command over 72% of the market, their highest level since 2020. The number of active cryptocurrencies is also declining, making this altcoin cycle slower, more selective, and fundamentally different from previous ones. Is altseason still on the horizon, or has the crypto landscape permanently changed?

Decline of altcoins, despite market growth

The figures reveal a clear trend: while Bitcoin has staged a strong recovery, the number of active cryptos has quietly diminished. Despite the apparent market growth, many new projects are struggling to gain traction. Not every project possesses the potential to survive and capture investors' attention. Although numerous new tokens are being launched, only a select few are making a real impact. This serves as a warning: a broadly based "altseason" where virtually all alternative coins flourish doesn't seem to be on the cards for the time being.

More platforms, fewer opportunities

We're observing a paradoxical situation. The infrastructure for trading crypto has expanded enormously, with more exchanges and trading pairs than ever before. Yet, the market seems to be consolidating. The total number of available trading pairs has even slightly decreased. This suggests that the market is reducing excess and favouring more established assets. Liquidity and attention are primarily flowing towards the most trusted and proven assets. Access to the crypto market has never been easier, but the willingness to take risks has clearly declined.

The takeover by Bitcoin and stablecoins

The figures are clear: Bitcoin and stablecoins now represent a significantly larger portion of the market than they have for a long time. This demonstrates that investors, in the current circumstances, are prioritising security and liquidity. Bitcoin is viewed as a robust long-term store of value, while stablecoins offer much-needed predictability in a volatile environment. Together, they form a foundation of security, a "risk-off" strategy in an uncertain market. Traders are choosing to park their assets in stable assets or follow Bitcoin's relative strength.

What this means for altseason

Does this signify the end of altseason? Probably not definitively, but it's certainly in a deep slumber. The current dominance of Bitcoin and stablecoins, combined with a decreasing number of genuinely active trading pairs, indicates that investors are limiting their risks and concentrating their capital. When altseason eventually returns, we don't anticipate a significant impact like in the past. Instead, it will likely be a more selective rally, led by projects that have actual traction, tell a compelling story, and manage to attract the interest of larger, potentially institutional, investors.


Disclaimer: This is no financial advice. Always consider conducting investigation and seek professional advice.