CryptoRank analysts have analyzed the situation in the cryptocurrency market and identified the main factors that prevented the anticipated altseason from starting, despite some record performances from coins like Binance Coin (BNB), Solana (SOL), and Hyperliquid (HYPE). Most altcoins are currently trading 40–50% below their all-time highs, and experts emphasize structural reasons that hinder classic growth scenarios for the entire market.
This is reported by Business • Media
Rapid Increase in the Number of Tokens and Liquidity Dilution
One of the main issues has been liquidity dilution. Over the past year, the number of tokens tracked by aggregators has increased from 5.8 million to 29.2 million. New projects are unable to maintain their price for long, and only 15% of altcoins launched in 2025 are trading above their token generation price (TGE).
Another significant barrier to altseason has been tokens with low circulation and high fully diluted value (FDV). Even with fewer launches in 2025, such projects negatively impacted the market: the main benefits accrue to early investors, while retail participants often become liquidity for exits. A small number of tokens at launch artificially inflates valuations, and subsequent unlocks create price pressure due to venture capital exits.
Competition from Other Financial Instruments and Institutional Influence
Altcoins, which were previously seen as a way to make quick profits, are gradually turning into medium- or long-term investments and are forced to compete with other financial sectors. At the beginning of 2025, part of the retail liquidity shifted from altcoins, especially from venture tokens with high FDV, to meme coins. However, after a series of failures and scams, capital left even this sector, not returning to altcoins, which further weakened the market.
At the same time, perpetual derivatives and prediction markets have gained traction, attracting those looking for quick and risky profits.
Institutional capital remains crucial for market support, but it is primarily focused on large and stable tokens. In 2025, a significant portion of investments flowed into assets like Ethereum (ETH), Solana (SOL), and XRP (XRP), particularly through ETFs. Meanwhile, the emergence of digital asset trusts (DATs) has allowed investors to gain more regulated access to crypto assets.
“The classic model of altseason, where nearly the entire market rises, is gradually losing relevance,” and liquidity will concentrate around “blue chips.”
However, this effect was temporary: in November 2025, $3.5 billion was withdrawn from Bitcoin ETFs, and another $1.1 billion in December. Without significant new capital inflows, the return of altseason remains unlikely.
Previously, CoinEx Research analyst Jeff Ko also predicted that there would be no traditional growth for altcoins in 2026, and liquidity would continue to concentrate around the most resilient tokens.