The carnage comes despite some bright spots in recent weeks. Solana had been outpacing Ethereum in DEX volume for the fourth consecutive month. AI-related tokens had surged 15% on a new platform launch. Even ETH managed to climb to $3,200 against USDT. All that momentum? Gone.
US Bitcoin spot ETFs recorded $489.60 million in net outflows as institutional investors headed for the exits. Bitcoin’s dominance index dropped from 50% to 45%, suggesting the big money is getting nervous. So much for that “institutional adoption” narrative.
On-chain data tells an interesting story beneath the bloodshed. Ethereum-based altcoin transactions are actually up 25% since February, with increased activity across various chains. More investors are engaging with altcoins than ever before. Analysts predict that recovery could take over two months based on previous market cycle patterns. The Asia-Pacific region continues to drive significant trading volume, accounting for nearly one-third of global cryptocurrency transactions.
Despite the market carnage, altcoin activity surges beneath the surface as more investors than ever dive into the ecosystem.
Trading volumes for the top 10% performing altcoins jumped 30%. People are still buying the dip. Or catching falling knives. Take your pick.
FOMO has been driving cascading price effects for months. Now the fear runs in the opposite direction. The RSI for many altcoins sits around 70, indicating overbought conditions even after the correction. Not great.
The Trump administration’s pro-crypto stance has fueled new ETF filings, but regulatory scrutiny on meme coins and low-cap tokens is intensifying. Talk about mixed signals.
Looking ahead, some analysts still predict an altcoin season in February/March 2025. Bold call, considering the current bloodbath.
With estimates of 100 million crypto assets by year-end, one thing’s certain: not all these tokens will survive the next correction. Market watchers recommend maintaining a balanced portfolio with 50% Bitcoin for stability during these volatile conditions.
