Altcoin Trading Volume: What Does This Mean for the Altcoin Season?

Altcoin trading volume has returned to pre-FTX levels, but the number of market leaders has decreased. This shift is particularly noticeable as investors are moving away from riskier assets in the face of new trade tariffs and uncertain economic conditions. The question now is: Does this signal the end of an altcoin season?

A report from Kaiko Research and BRN highlights that altcoins have struggled to reach the peaks seen in 2021-2022. While altcoins are gaining dominance over Bitcoin, this growth has been uneven.

According to the report, altcoin trading volume has returned to pre-FTX levels, but the top 10 altcoins account for 64% of the total volume. This suggests that investors are focusing their capital on a select group of assets. Additionally, market depth mirrors this trend, with the top 10 altcoins comprising over 60% of the 1% depth.

Which Altcoins Are Expected to Rise?

After the US elections, altcoin interest did pick up, but it has been limited to a few specific altcoins. Unlike in previous cycles where a rising tide lifted all boats, investors are now concentrating on high-liquidity assets.

Analysts point out that this shrinking pool of market leaders reflects the growing influence of institutional capital. With tighter monetary policies, traders are adopting a more cautious approach. However, there is still hope for certain altcoins. Projects with real-world utility, such as DePIN, may capture investor attention.

In conclusion, investments in altcoins are increasingly focused on projects that generate revenue. This shift means that the likelihood of a major altcoin season, similar to what we have seen in previous years, seems slimmer.

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