The worst Altcoin cycle in history: The shocking reason behind the crash

Over 40% of altcoins are nearing their all-time lows

The crypto market is bleeding heavily. While Bitcoin tries to hold its ground amid the uncertainty, altcoins have plunged into a fiercely bearish trend. According to the latest data published by CryptoQuant analyst Darkfost, over 40% of altcoins are currently trading near their all-time lows (ATL).

This alarming figure even surpasses the 38% peak recorded during the last bear market right after the resounding collapse of FTX. Ecosystem giants like Solana (SOL), Cardano (ADA) and XRP are experiencing massive retracements, with losses sometimes reaching 70% to 90% from their peaks.

On the flip side, 22 cryptos are standing out by outperforming the market, notably TAO, Hyperliquid, Canton Network (CC) and Memecore.

The highly anticipated breakout meant to trigger the altseason has turned into a total nightmare for investors. Memecoins, often considered the speculative engine of the market, are virtually dead, posting staggering drops that are wiping out the most exposed portfolios.

47 million tokens: The massive dilution destroying liquidity

Why are we witnessing such a slaughter? Beyond geopolitical tensions and macroeconomic uncertainty pushing investors to flee risk, an insidious structural force is destroying the market from within: the uncontrollable hyperinflation of tokens.

Darkfost points out that there are now over 47 million cryptocurrencies in circulation across various networks. There are roughly 22 million tokens on Solana, 18 million on Base and 4 million on the BNB Smart Chain. This frantic creation comes at a dramatic cost to the entire ecosystem.

The overall available capital has not grown in proportion to this insane supply. As a result, liquidity is diluted to an unprecedented level. Capital is scattered, preventing any sustainable rally or bull run for the vast majority of projects, which find themselves completely stripped of buying support.

Which altcoins will survive to lead the next bull run?

Faced with this historic correction, market players are divided. Historically, such underperformance often marks the final phase of a bear cycle, offering unexpected entry points before a potential global price recovery.

The 22 cryptos that have managed to survive, such as TAO and Hyperliquid, will have a good chance of following Bitcoin in the next uptrend.

However, with such liquidity dilution, buying the dip blindly has become extremely dangerous. Only projects with solid fundamentals, genuine utility and an engaged community will manage to capture capital during the next bullish cycle.

Trader DrProfits even compares this altcoin crash to the dotcom bubble. As a reminder, the vast majority of stocks never recovered after that crash. According to him, altcoins will suffer the exact same fate:

“Altcoins are not just in a bear market, they are in a secular bear market. A phenomenon similar to the dotcom bubble, with stocks that never recovered. I clearly announced it for 2025: there is no altcoin season!”

While the Altcoin Season Index stagnates desperately and Bitcoin continues to rule with an iron fist, a burning question remains: is it still worth buying them, or is the worst yet to come for altcoins?

Which cryptos should you buy?

You will need to be more selective than ever. According to Elon Musk’s AI Grok, the cryptos most likely to post a new ATH are: Ethereum, Solana, XRP, Sui, BNB, TAO, Chainlink, HYPE, AVAX and Render.

Choosing from these 10 cryptos already helps to greatly reduce risk, as they combine solid fundamentals, a strong community and a proven price history.

Sources:

• AMBCrypto
• Tradingview
• X – DrProfits

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