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Expert Warns: A Brutal Altcoin Purge Is Coming—Major Coins at Risk!

11h05 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Altcoins

The next bullish cycle will be unlike any other. Indeed, the time when all cryptos skyrocketed seems to be over. Ki Young Ju, CEO of CryptoQuant, sounds the alarm: during this year 2025, the majority of altcoins could disappear. Only those able to prove their economic viability and attract the attention of institutional investors might survive. This prediction comes as 24% of the 200 largest cryptos have reached their lowest levels of the year. Is the market starting to sort between solid projects and the others? The prospects for crypto ETFs, the fundamentals of altcoins, and investment trends now seem to be the true arbiters of survival in this ultra-competitive sector.

Crypto: a man in a dark suit in a desert landscape littered with cracked altcoins, contemplating the rare golden coins under a ray of sunlight.

A market in purge: the end of the generalized bull run

The euphoria of previous bullish cycles, where nearly every project recorded a spectacular surge, seems to belong to the past. Ki Young Ju announces a radical change. “The era when everything pumped is over,” he indicated on February 25, 2025, on social network X (formerly Twitter). According to him, the majority of altcoins will not survive it. This observation is based on a simple observation: the market is in a full purge phase.

The data is eloquent. Nearly a quarter of the 200 largest cryptos have reached their lowest level in a year. In a market where speculation has long dictated the trend, this phenomenon is often a sign of imminent capitulation. Juan Pellicer, senior analyst at IntoTheBlock, sees this correction as a necessary market purge, where over-leveraged positions are being liquidated. Solana, for example, has undergone massive liquidations, which accentuates the correction. For many investors, this period could be a strategic entry point, but for others, it is confirmation that the time for sorting has come.

Crypto ETFs: an opportunity for a few survivors

While the majority of projects are under pressure, some retain a major asset: the possibility of obtaining ETF approval. Indeed, seven cryptos are currently awaiting a green light from U.S. regulators: Cardano (ADA), Solana (SOL), XRP (XRP), Litecoin (LTC), Hedera (HBAR), Dogecoin (DOGE), and Polkadot (DOT). According to experts, these assets could benefit from an influx of institutional investments if their applications are approved positively.

But this natural selection is not solely based on the ETF. User activity and economic fundamentals remain key factors. Marcin Kazmierczak, COO of RedStone, points out an inconsistency: “Most altcoins have user volumes well below their peaks in 2021. This means we are still in a speculative phase, far from widespread adoption.” Thus, this observation questions the recent rebound of certain assets and illustrates the volatility that persists in the market.

The crypto market is entering a phase where natural selection will operate more harshly than ever. However, crypto ETFs and the arrival of institutional investors could create an even greater divide between viable projects and the others. 2025 is shaping up to be a decisive year: investors must now scrutinize each project with a pragmatic eye and no longer rely on blind bull runs for profits. The next major bullish wave will not be universal: only solid projects will emerge victorious.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.