40% of all altcoins are trading around their all-time low

The altcoin market is facing tough conditions. As many as 40% of all altcoins are currently trading near their all-time low, and that figure even peaked at 45% when Bitcoin fell back below $60.000 at the end of June. Analyst Darkfost shares the hard numbers and warns investors about the structural problems plaguing the market.

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An Extreme Degree of Underperformance

Darkfost builds a chart based on CryptoQuant data showing how many altcoins are currently trading at less than 25% of their historical peak. That percentage now stands at 39.9%, which he describes as an extreme degree of underperformance. The white line in the chart shows the Bitcoin price, which is currently around $62K, down 1.4% in the past 24 hours.

What makes the situation even more painful is the context. During previous bear market phases in 2022 and 2023, similar peaks were seen in the number of altcoins trading close to their all-time low, but the current situation is playing out while Bitcoin is relatively high. This means that the underperformance of altcoins is not simply due to a general market decline, but to structural problems within the altcoin sector itself.

53.5 Million Cryptos and 60,000 New Ones Per Day

A large part of the problem lies in the massive increase in the number of available tokens. CoinMarketCap now counts around 53.5 million cryptocurrencies, and around 60,000 new ones are added every day. This explosive growth is causing a huge dilution of liquidity. Without a strong inflow of fresh capital, it is mathematically impossible for all these projects to stay afloat.

Darkfost argues that the market has fundamentally changed. Where in the past you could broadly enter a bull market and almost always make a profit, today’s market requires a much more selective approach. Those who do not critically assess the projects they invest in run a high risk of ending up with tokens that never recover. The message is clear: be sharp, select carefully, and take into account the reality that the majority of existing crypto projects are doomed to fail.