Jan 3, 2026
7 0
Altcoin Market Cap Drops Over 50%, Trading Activity Remains High
Altcoin Market Overview:
- Anticipated altcoin season for 2025 did not materialize; most altcoins experienced significant drawdowns.
- As 2026 nears, sentiment remains fragile with concerns over structural weakness and declining liquidity.
- The OTHERS index (excluding top 10 cryptocurrencies) dropped over 50% from $451 billion to around $182 billion since December 2024.
- This decline reflects aggressive de-risking, weak demand, and sustained selling pressure.
Analysts' Perspectives:
- Some analysts suggest the altcoin cycle may not be over, citing historical precedents of recovery following underperformance.
- If liquidity conditions improve, 2026 might see a resurgence in altcoin activity.
Trading Activity Insights:
- Despite price weakness, trading volumes for altcoins (excluding top five) on centralized exchanges are higher than previous cycles.
- On-chain data indicate a market shift, with whales and professional traders driving volume.
- Retail participation has decreased, but overall activity remains high.
OTHERS Market Cap Analysis:
- OTHERS index shows a prolonged correction, stabilizing around the $200–210 billion range.
- Technical analysis indicates oscillation around the 200-week moving average, suggesting a long-term equilibrium zone.
- Lack of aggressive lower lows hints at exhaustion of forced selling, but absence of higher highs keeps outlook neutral-to-bearish.
- A meaningful recovery requires reclaiming the $260–280 billion range and surpassing key moving averages.
The current phase suggests consolidation and a search for a durable bottom rather than an imminent altcoin season.