The market cap ratio of altcoins to $BTC has now hit 0.5, meaning the total market cap of altcoins is only half that of Bitcoin. We're just 33% away from the cycle's low, and after enduring two years of this, another year isn't too much to handle.
The real issue with altcoins isn’t just the decline in market cap—it’s the continuous increase in their number. While it may seem like the total market cap hasn’t dropped significantly, the reality is that with each new altcoin, liquidity gets further diluted. If the overall market cap remains unchanged, this leads to sustained price suppression across all altcoins.
In an environment of weak liquidity, this problem has no immediate solution. Only when macro liquidity improves will we see a real opportunity for recovery.
