A Report Predicts The End Of The Crazy Altcoin Surges: Should We Be Worried?

As Bitcoin strengthens its dominant position in the markets, the Kaiko Research report disrupts expectations for 2025: forget the widespread altseason of the past, only a few carefully selected altcoins will thrive this year.

The Altcoin Market Enters a Phase of Strategic Selectivity

Cryptocurrency investors may need to adjust their strategies in 2025. According to a report published in March 2025 by Kaiko Research in collaboration with Blockhead Research, the era of widespread altcoin surges is fading in favor of a more selective approach.

This significant change can be explained by the evolution of liquidity trends, the intensification of regulatory pressures, and the expansion of Bitcoin’s institutional footprint.

The concentration of the altcoin market has reached historic highs. The data reveals that the top 10 altcoins now represent 64% of the total trading volume, compared to only 32% at the end of 2021.

This centralization has accelerated since the last US elections, creating an environment where some large caps like Solana (SOL) and XRP are progressing, while small and mid-cap tokens are down more than 30% since the beginning of the year.

The Altcoin Season Index from blockchaincenter.net confirms this trend with a score of 20, far from the threshold of 75 needed to declare a true altcoin season.

In concrete terms, this means that only 10 cryptocurrencies among the top 50 have outperformed Bitcoin in the last three months.

Unfavorable Macroeconomic Factors for Altcoins

The global economic context further complicates the situation for altcoins. The rise in interest rates and the reduction of liquidity by central banks have significantly dampened appetite for risky assets.

This climate contrasts sharply with the accommodative monetary policies that fueled the 2021 boom.

Bitcoin, for its part, has benefited from the approval of spot exchange-traded funds (ETFs) in the United States, attracting over a billion dollars in trading volume on the first day.

This institutional legitimization has strengthened its dominant position, to the detriment of altcoins that face increased competition for capital.

The American political uncertainty index, now at record levels since the Covid-19 pandemic, has also pushed investors towards Bitcoin’s perceived stability.

This search for a safe haven partly explains the low activity on altcoin networks, a phenomenon already highlighted in our previous article: Crypto: Why is the altseason delayed?

A New Era for Crypto Investors

The Kaiko Research report concludes that the traditional period of uniform altcoin rises could be replaced by a phase of “strategic selection.”

In this new paradigm, the success of an altcoin will depend essentially on three key factors:

• The depth of its liquidity
• The institutional support it receives
• Its measurable adoption

This evolution marks a decisive turning point for crypto investors, who will now need to prioritize precision in the composition of their portfolios rather than broad diversification.

Fragile or truly useless projects risk being sidelined in favor of stronger alternatives that are better positioned to attract institutional investments. The recent collapse of 99% of memecoins on pump.fun perfectly illustrates this new market selectivity.