The altcoin market remains below its November 2021 peak, with various shifts in capital dynamics.
Current State of the Altcoin Market
The total altcoin market capitalization is around $943 billion, still below the peak of $1.1 trillion achieved in December 2024. The market experienced a significant drop and has stabilized at this level.
Changing Altcoin Season Dynamics
Traditional altcoin seasons are no longer defined by capital rotation from Bitcoin to altcoins. Ki Young Ju noted that this altcoin season may rely on stablecoin liquidity and the expansion of stablecoin trading pairs, indicating a new understanding of altcoin demand.
Market Outlook
Felix Hartmann, founder of Hartmann Capital, predicts a prolonged decline in the prices of most altcoins until January 2025. Hartmann believes that only after the current consolidation phase ends will the market be able to recover.
The altcoin market is in a transitional phase, focusing on stablecoins and more restricted capital movements compared to previous cycles.
