More than 40% of altcoins are now trading at or near their all-time lows, surpassing the levels seen during the previous bear market. Analysts attribute the decline to a mix of macroeconomic pressure, geopolitical uncertainty, and structural issues within crypto, including a massive increase in token supply. With over 47 million tokens across major blockchains, liquidity is being spread thin, leaving many smaller assets with weak demand and limited price support.
The broader altcoin market has also seen its total capitalization fall below $1 trillion, while sentiment remains bearish, with the Fear and Greed Index stuck in “extreme fear” for weeks. Analysts note that capital is flowing out of altcoins, and unless liquidity returns, the sector may continue to face prolonged weakness despite occasional gains in major cryptocurrencies.
