With that much supply chasing a limited pool of investor money, most of these assets simply cannot attract enough buyers to hold their value. Analysts call it liquidity dilution — capital spread too thin to support the crowd.
More than 40% of Altcoins near All-Time Lows
That figure surpasses the previous bear market peak of around 38%, making this cycle the worst on record for altcoin performance.
CryptoQuant analyst Darkfost put it bluntly. Altcoins, he said, have never faced this kind of pressure in the current cycle.
Staggering LossesSome smaller assets are in even worse shape. VeChain is down approximately 98% from its record price and is hovering just above an all-time low.
Ethena hit a new all-time low recently, last trading around $0.09. Arbitrum and SUI are both sitting at levels where a further drop would push them into all-time low territory.
Risk assets across the board have taken hits, and crypto — altcoins above all — has absorbed some of the heaviest blows.
Bitcoin Holds Up. Most Altcoins Don’t.Bitcoin’s relative steadiness compared to the rest of the market has drawn attention.
While it is not immune to the selling pressure, its decline has been far less severe than what altcoins have experienced.
That gap between Bitcoin and the broader crypto market is a defining feature of this particular downturn.
Featured image from Unsplash, chart from TradingView
