Recent analysis indicates that altcoin trade volume is now more concentrated than before, with the top 10 altcoins making up 64% of total trading volume. This concentration reflects a shift toward institutional investment focused on a limited number of high-liquidity assets, moving away from broader retail-driven speculation. Despite a post-election rebound in altcoin interest, this uptick is restricted to a few select coins, contrasting with previous cycles where many altcoins benefited simultaneously. The current landscape suggests that institutional caution, influenced by tighter monetary policy and interest rates, plays a significant role. Furthermore, initial expectations surrounding regulatory clarity have fallen flat, particularly in the absence of retail engagement. Although altcoin ETFs might provide a boost, uncertainty remains regarding which altcoins could qualify. Practically, this means that investors may prioritize projects with revenue generation over speculative trades, hinting at a maturation in the market that could lessen the likelihood of a broad altcoin rally.

Source 🔗