40% of altcoins trade near all-time lows as low liquidity and daily token creation intensify market underperformance.
Macro & Markets ·
CryptoQuant analysis shows that roughly 40% of altcoins are presently priced around their all-time lows, marking severe underperformance during the current bear cycle. The proportion has moved higher—reaching 45%—when bitcoin dipped below $60,000 last month, signaling a correlation between broader market weakness and altcoin distress.
Depleted liquidity stands as a primary driver of this slump. The ecosystem has fractured under the weight of token proliferation: CoinMarketCap data indicates roughly 53.5 million cryptocurrencies exist, with approximately 60,000 added daily. Without sufficient capital inflows to absorb this new supply, most tokens lack the depth to attract or retain investors.
The bottleneck presents a survival challenge. CryptoQuant's Darkfost emphasized that selectivity is now critical, as only a handful of projects are expected to endure the bear phase. This echoes earlier warnings from CryptoQuant founder Ki Young Ju, who cautioned in December 2024 that inadequate liquidity inflows would constrain altseason upside—a prediction borne out as bear conditions have further squeezed the cohort.