Bitcoin's Dominance Reaches Historic Highs: Are Altcoins In Danger?

The dominance of bitcoin reaches record levels, questioning the future of altcoins. Is altseason a thing of the past? Analysis of a changing market.

Bitcoin absorbs all the liquidity

Bitcoin currently captures 61.6% of the total market capitalization of crypto. A level not seen in years! On February 3, 2025, the dominance of BTC even reached 64.3%. According to crypto experts, this is a sign of a growing concentration of capital on the safest digital asset in the sector.

Historically, the cryptocurrency market operated on a well-known cycle among crypto investors. After a BTC rise, profits were transferred to altcoins, which favored a surge in value! This rotation of capital thus allowed the emergence of new crypto-assets. Above all, it fueled the famous altseason.

But this mechanism seems blocked today. Indeed, the introduction of Bitcoin ETFs has profoundly changed the game by attracting a significant share of institutional funds. In practice, these new digital assets isolate crypto liquidity, preventing capital from being redistributed to altcoins.

The consequence is clear: a market where bitcoin monopolizes the majority of investments at the expense of other cryptocurrencies.

The explosion of tokens: a saturated and illiquid market

The cryptocurrency market has never been so fragmented.

• Crypto analysts count over 12.7 million different digital assets (other than bitcoin) on March 15, 2025, compared to less than 11 million in February.
• Just in January, over 600,000 new crypto tokens were launched. Most of these are memecoins and low market cap altcoins.

This oversupply poses a significant problem: too many projects, not enough crypto liquidity. Many of these new tokens do indeed fail quickly and stagnate in the market.

In this sense, analyst Jesse Myers explained:

When a token dies, it doesn’t drop to zero. It remains stuck between $10,000 and $100,000 in capitalization, preventing the reallocation of funds.

This saturation even worries major crypto exchange platforms. The CEO of Coinbase, Brian Armstrong, is considering reforming the token listing process to adapt to this explosion of digital assets.

This data reveals an important fact: the crypto market is undergoing significant changes. If the altseason seems to be over in its traditional form, a new balance could emerge. It remains to be seen if altcoins will manage to regain their attractiveness in the face of a bitcoin that is more dominant than ever!