Altcoin Season 2025: Analysis of Altcoin Capitalization and Trading Volume

Updated

March 25, 2025

Gambar Altcoin Season 2025: Analysis of Altcoin Capitalization and Trading Volume

Jakarta, Pintu News – The altcoin market is facing significant uncertainty along with a 75% drop in trading volume and a decline in investment in Web3. With the volatile dominance of Bitcoin and the ever-changing performance of the altcoin sector, the chances for an altcoin season in 2025 is still a topic of debate among investors and analysts.

Current Crypto Market Landscape

From early 2022 to March 2025, the price of Bitcoin (BTC) peaked at around $70,000 at the end of 2024, yet the number of active cryptocurrencies listed on CoinMarketCap fell from 11,000 to 10,600. This decline reflects broader market trends, including a significant drop in Web3 investment.

From 2021 to 2023, funding for Web3 plummeted from $33 billion to less than $7 billion, a drop of 74%, which is much larger than the 38% contraction in the overall venture capital market.

The FTX collapse and regulatory uncertainty in several major jurisdictions have eroded investor confidence, while investment in AI surged to $50 billion by 2023, drawing capital away from crypto projects. This decline in the number of active projects and investor interest in altcoins adds to the challenges facing the market.

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Altcoin Capitalization and Trading Volume Analysis

Data from Alphractal shows that altcoin market capitalization peaked at $1.6 trillion at the end of 2021 before plunging to $0.4 trillion in 2022. Although it briefly recovered to $0.8 trillion by the end of 2024, the market capitalization declined again. Trading volume follows a similar pattern, with a spike to $400 billion in December 2024 before falling 75% to $100 billion.

This decline in trading volume is in line with the 400 altcoin decline observed on CoinMarketCap, reflecting broader challenges such as regulatory uncertainty and a shift in investor focus to AI. These factors have contributed to a decline in public interest in altcoins, mirroring previous declines.

Potential Altcoin Season in 2025

Despite a 75% drop in altcoin trading volume, the possibility of an altcoin season in 2025 still exists. Historical patterns show that altcoin market capitalization can grow despite lagging trading volumes, as seen during the 2021 cycle.

The convergence between AI, crypto and gaming could attract institutional capital, especially in a year where traditional investments are expected to underperform. With speculative interest likely to resurface, undervalued altcoins could capitalize on emerging technologies. Although market conditions remain challenging, the potential for an altcoin season remains, driven by innovation, institutional engagement, and strategic capital allocation.

Investment Opportunities in Altcoins

Investors may find opportunities in projects that adapt to evolving market trends, positioning themselves for a potential rebound in the altcoin sector. Despite the challenges, continuous adaptation and innovation could pave the way for a future altcoin renaissance.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.