Over 10% of all cryptocurrencies have vanished since April as Bitcoin’s surge filters out low-liquidity and outdated altcoin projects.
Despite the purge, active crypto tokens hit 10,800 in May, tracking Bitcoin’s climb toward the $130K resistance zone.
Capital rotation signals a looming altcoin cycle, with Ethereum and Layer-2s poised to outperform as BTC dominance declines.
More than 10% of all active cryptocurrencies have vanished since April 2025, according to CoinMarketCap data, signaling one of the largest asset purges since the last cycle low. This contraction occurs as Bitcoin pushes toward new highs, revealing a strong correlation between price expansion and ecosystem consolidation.
10.5% of Altcoins Vanish Amid Market Purge
In a report by Alphractal, over 1 in 10 crypto projects were either delisted or ceased operations in the past two months. This wave reflects failed ventures, rug pulls, illiquid assets, and the quiet exit of outdated protocols. Many were casualties of the January–April 2025 bear market that forced out unsustainable models.
https://twitter.com/Alphractal/status/1928835795202273512
Projects also migrated to new chains or restructured under different frameworks, further thinning the market. Alphractal stated this natural selection phase is painful for low-liquidity altcoins, but beneficial for filtering out noise, leaving a leaner, more innovation-driven ecosystem.
Despite the sharp decline, this reset is not a sign of contraction but recalibration. It reflects a maturing industry where speculative excess is replaced with sustainable utility and on-chain traction.
Active Tokens Rise Alongside Bitcoin’s Climb
While thousands of tokens vanished, total active cryptocurrencies still hit a record high of 10,800 in May 2025. Alphractal’s chart shows this growth mirrors Bitcoin’s bullish structure, with surges in token activity tracking major price milestones. From $35,000 in early 2021 to above $70,000 now, each wave of network expansion followed Bitcoin’s lead.
According to an analysis by Crypto Beast, the current cycle began in late 2023 with a rally above $30,000, gaining steam through early 2025. The asset now approaches a critical $120,000–$130,000 zone historically tied to altcoin acceleration as Bitcoin dominance stabilizes.
This repeating pattern underscores how altcoin creation lags but eventually aligns with Bitcoin's momentum. In past corrections, active project counts remained elevated, indicating sustained development even during price retracements.
Capital Rotates as Market Eyes Altcoin Season
As Bitcoin trades near $104,639, analysts project a final breakout to $130,000 before entering a correction phase in 2026. Crypto Beast outlines a three-stage cycle: rally, altcoin-led consolidation, and a bottoming event near $60,000.
Expectations are growing for a sharp capital rotation into high-beta assets. Projections suggest Bitcoin could double, Ethereum may 5x, and altcoins see even steeper gains, driven by falling dominance and liquidity shifts. Institutions are now positioning for increased Layer-2 velocity and narrative rotation, signaling the start of a deep altcoin cycle.
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