ALTCOINS IN DANGER!!
Bitcoin today captures 61.6% of the total crypto market capitalization. A level not seen in several years! On February 3, 2025, BTC dominance even reached 64.3%. According to crypto experts, this is a sign of increasing capital concentration on the safest digital asset in the sector.
Historically, the crypto market operated according to a well-known cycle for investors. After a rise in BTC, profits were transferred to altcoins. This favored a value explosion! This capital rotation allowed for the emergence of new crypto-assets. Upstream, it fueled the famous altseason.
But this mechanism seems to be blocked today. Indeed, the introduction of Bitcoin ETFs has changed the game by attracting a significant portion of institutional funds. Specifically, these new digital assets isolate crypto liquidity.
The impact is clear: a market where BTC captures the majority of investments to the detriment of other cryptos.
Crypto analysts report over 12.7 million different digital assets on March 15, 2025, compared to less than 11 million in February.
In January alone, over 600,000 new crypto tokens were launched. These are mainly memecoins and low market cap altcoins.
This overabundance poses a significant problem: too many projects, not enough crypto liquidity. Many of these new tokens indeed fail quickly and stagnate in the market.
This saturation even worries major crypto exchange platforms. The CEO of Coinbase is considering reforming the token listing process to adapt to this explosion of digital assets.
