Altcoin Trade Volume Concentration Reaches New Highs
Risk assets, including bitcoin and cryptocurrencies, are losing appeal among investors, exacerbated by impending tariffs. This raises concerns about a potential altcoin season.
Key findings from a report by Kaiko Research and BRN include:
- Altcoins have not regained their peaks from 2021-2022.
- Altcoin dominance is rising relative to bitcoin, though distribution is uneven.
- The top 10 altcoins account for 64% of total trading volume.
- Investors are focusing on a concentrated set of high-liquidity assets.
- A shift from retail speculation to institutional capital is observed.
After the US elections, trading volumes for select altcoins increased, contrasting with previous cycles where overall altcoin values rose together. Regulatory clarity was anticipated to boost altcoins but has yet to attract significant retail interest.
Potential developments include the introduction of altcoin ETFs, which may enhance institutional engagement. However, uncertainty remains regarding which altcoins are ETF-ready. Attention is shifting towards projects focused on real-world utility and revenue generation.
The likelihood of a broad altcoin season appears diminished, reflecting a more mature market approach.