Despite the rise in the number of exchanges and trading pairs, altcoin dominance has significantly decreased in the crypto market, indicating a shift in investor preferences.
Rise of Bitcoin and Stablecoins
Bitcoin and stablecoins now account for over 72% of the crypto market, the highest level since 2020. This shift suggests a risk-averse and cautious stance among investors, reflected in declining altcoin activity.
Decline of Altcoins Amidst Market Growth
Despite boasting over 100,000 trading pairs and 800 active exchanges, altcoin dominance has shrunk to 27%. This decline is accompanied by a decreasing number of active cryptocurrencies, indicating that many projects are either becoming irrelevant or leaving the market entirely.
Future of Altcoins and October Trends
Given the current dynamics, it is expected that any future altseason will not be as broad-based as in past cycles. Instead, a more selective rally is anticipated, focusing on projects with real potential and institutional interest.
The current state of the crypto market indicates a shift in focus from altcoins to Bitcoin and stablecoins amid uncertainty, which may alter investment strategies in the future.
