Bitcoin's record-level dominance questions the future of altcoins and the traditional altseason.
Bitcoin Absorbs All Liquidity
Bitcoin currently captures 61.6% of the total market capitalization of crypto. On February 3, 2025, BTC dominance even reached 64.3%. Experts attribute this to a growing concentration of capital around the safest digital asset in the sector. Historically, after BTC gains, profits would be transferred to altcoins, favoring a surge in their value and fueling altseason. However, the introduction of Bitcoin ETFs has significantly changed this process by isolating liquidity in bitcoin and disrupting capital redistribution.
Token Explosion: A Saturated and Illiquid Market
The cryptocurrency market has never been so fragmented. According to analysts, as of March 15, 2025, there are over 12.7 million different digital assets excluding bitcoin. Over 600,000 new crypto tokens were launched just in January, most being memecoins and low market cap altcoins. This oversupply poses significant challenges as many new tokens quickly fail and remain in the market, preventing fund reallocation. The CEO of Coinbase is considering reforming the token listing process in response to this market saturation.
Future of Altcoins Amidst Bitcoin Dominance
These changes highlight significant transformations in the crypto market. While the traditional altseason seems over, something new might emerge. The question remains whether altcoins will regain appeal in the face of bitcoin's growing dominance.
The crypto market is undergoing significant changes. For now, bitcoin remains dominant, while altcoins seek ways to regain investor confidence.
