Why is the altcoin season delayed? 📉 CryptoRank analysts point out 3 major reasons
Everyone is waiting for altcoins to embark on their 'moon journey' (To the Moon), but the market charts show the opposite situation. CryptoRank's analysts have identified three structural barriers that hinder capital inflow into the altcoin market:
1️⃣ Oversupply (29.2 million tokens) 🪙
The market is saturated. Over the past year, the number of tracked tokens has increased several times. A massive influx of new projects has 'diluted' capital: liquidity is simply not enough to drive all tokens up like in 2021.
2️⃣ Competition from ETFs and DATs 🏦
Institutional investors are now entering the cryptocurrency market through 'white' tools. The liquidity that could have flowed into top altcoins is now coming in through spot Bitcoin/Ethereum ETFs or Digital Asset Tokens (DATs), bypassing the vast altcoin market.
3️⃣ Lack of 'fresh' liquidity 💧
Despite the rise in Bitcoin prices, retail investors have become more cautious. The funds in the market are insufficient to support a large-scale comprehensive rebound, while large-scale token unlocks continue to exert pressure on prices.
Conclusion: The era of 'buying any junk coin and making money' is coming to an end. The current market is shifting towards a cherry-picking stage, where only projects with real value and strong token economics can survive.
💰 What do you have in your portfolio? Are you holding onto altcoins, or have you switched to Bitcoin/stablecoins, waiting for the market's eventual breakthrough?
Write in the comments which project you think can rise against the trend! 👇
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