Altseason stifled by lack of fresh inflows into sector — analyst
The total altcoin market capitalization remains below the November 2021 all-time high, currently around $943 billion. Bitcoin's market cap has doubled since 2021, leading analysts to suggest that only a few altcoin projects with strong use cases will survive. The altcoin sector briefly reached $1.1 trillion during a rally in late 2024 but has since retraced. The current altseason is expected to differ from previous cycles, relying more on stablecoin liquidity and an increase in stablecoin trading pairs rather than capital rotation from Bitcoin. Capital flows into Bitcoin and Ether ETFs indicate a shift away from on-chain markets, complicating the transfer of funds to smaller-cap altcoins. Predictions suggest most altcoins may experience a "slow bleed" until late January 2025, with limited opportunities for profit until market consolidation occurs.
