Altcoin Share at Historic Lows Surpasses 40% — CryptoQuant

CryptoQuant analyst Darkfost pointed out that altcoin prices are dangerously close to their all-time lows: nearly half of all coins are trading near their absolute lows.

He noted that this figure has already surpassed levels seen during the previous bear market, when the share of such assets was around 38%.

“The main reasons for the prolonged decline are geopolitical tensions and severe liquidity fragmentation,” he said.

The Problem of Excess Supply

The expert links the current trend to the sheer volume of new tokens, with more than 47 M created in total.

Solana became the leader in the number of launches, issuing 22 M tokens. The Base and BNB Smart Chain networks added another 18 M and 4 M, respectively. Such a large number of cryptocurrencies spreads available capital too thin, leaving most projects without sufficient support.

Opportunity for Investors

Geopolitical tensions are pushing traders toward safer assets, while Bitcoin and Ethereum are trying to hold their ground.

However, Darkfost sees hidden potential in the current situation. This phase of market cleansing is removing non-viable participants and creating conditions for entry into promising protocols at attractive prices.

“The current altcoin drawdown may open up opportunities for those who know how to identify resilient and promising projects,” the analyst concluded.

Read also:

• Spot Altcoin Trading Volumes Drop to Multi-Month Lows — CryptoQuant
• Altseason Mentions Hit a Record Low on Social Media — Santiment

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