Analysts from the CryptoRank platform have identified the key factors hindering the onset of a new altseason in the cryptocurrency market. Despite some major digital assets, such as Binance Coin (BNB), Solana (SOL), and Hyperliquid (HYPE), reaching historical highs, most altcoins remain 40–50% below their peak levels. Experts point to structural changes that have rendered the traditional scenario of mass altcoin growth ineffective.
This is reported by Finway
Increase in the Number of Tokens and Liquidity Dilution
One of the key reasons has been the significant expansion in the number of tokens in circulation. If a year ago aggregators tracked about 5.8 million tokens, by the end of 2025 this figure had risen to 29.2 million. Such rapid growth has led to liquidity dilution, making it difficult for even new crypto projects to maintain their market prices.
“The classic model of altseason, where almost the entire market rises, is gradually losing relevance, and liquidity is becoming concentrated around ‘blue chips’.”
According to the study, only 15% of altcoins that emerged in 2025 are trading above their token generation price (TGE). At the same time, numerous launches of low-circulation assets with high fully diluted valuations (FDV) negatively impact the market, prioritizing early investors and creating pressure on the secondary market due to subsequent token unlocks.
Competition with Other Financial Instruments
Another inhibiting factor is the emergence of alternative investment and earning tools. In 2025, retail liquidity partially shifted from altcoins to meme coins; however, after a series of frauds and failed launches, a significant portion of capital left this segment as well, without returning to altcoins.
Instead, the popularity of perpetual derivatives and prediction markets has increased, offering faster and riskier opportunities for traders. At the same time, institutional capital at the end of 2025 was primarily directed towards large and stable tokens: Ethereum (ETH), Solana (SOL), and XRP saw significant inflows due to the launch of ETFs, while the emergence of digital asset tokens (DATs) expanded opportunities for regulated investors.
However, this effect was temporary: by November, Bitcoin ETFs recorded a net outflow of $3.5 billion, and in December, another $1.1 billion. The absence of new large-scale capital inflows leaves altcoins without prospects for a quick recovery.
Thus, experts note that the classic altseason is gradually losing relevance, and liquidity is primarily concentrating around the largest and most reliable digital assets.