Too much altcoin? Why is the capital drained because of the small token

While Bitcoin (BTC) and other top -notch cryptocurrencies consolidated their dominance, the altcoins remained to fight for relevance. The chart shows a steady drop in Altcoin dominance outside the first 10 over the years.

This decrease in focus on smaller tokens stems from the growing reputation of Bitcoin as the assets of “safe refuge” and the dominance of the Ethereum in smart contracts apps.

Both giants won the lion’s share of market capitalization, leaving a limited room for speculative altcoin rapture.

With institutional investments and the increasing public confidence that mostly flows towards top players, the days of excitement on the Altcoin market can fail.

Is there too much altcoin?

The exponential increase in the number of unique crypto tokens emphasizes a major shift in the market landscape. Since 2017, a pure amount of tokens creation has increased, surpassing 30 million unique tokens by the end of 2024.

This fast growth fragmented the attention of investors and diluted the distribution of capital.

Platforms such as Solan (Sol), Ethereum (ETH) and Polygon (Pol) continue to dominate the creation of token, but the irresistible supply of new projects has become increasingly difficult for some of the attraction tokens.

As more tokens overwhelm the market, questions about quality, usefulness and long -term sustainability arise, which makes it difficult for investors to distinguish between promising altcoins and transient trends.

Separation of Bitcoin and Crypto Market cap

Although Bitcoin is a traditionally dominant force in the cryptocurrency, its trajectory of the market cap has abruptly parted with other cryptocurrency currency after 2022.

Bitcoin reached a market cap of more than $ 2 trillion in 2024, maintaining a constant rise despite instability on the wider cryptocurrency market.

In contrast, other cryptocurrencies have experienced significant fluctuations, and their collective market drop has been lagging behind Bitcoin.

This separation Furthermore, he proves Bitcoin’s unique role in accordance with value and emphasizes fragmentation in the Altcoin market.

Will Altseason will never arrive?

The persistent dominance of Bitcoin asks questions about the future “Altseasones”.