• Market saturation with over 36 million tokens slows down altseason.
  • Meme coins dominate exchanges, pulling liquidity away from quality projects.
  • Institutional focus on Bitcoin and Ethereum delays altcoin growth.

The long-awaited altseason, when altcoins outperform Bitcoin, seems to be on the back burner despite Bitcoin posting several all-time highs. It has caused many traders to wonder why the altcoins did not rally.

As much as altseason was delayed, rather than cancelled the explanation behind the flip has something to do with understanding the marketplace currently.

Market Dilution Slows Altseason

The number of tokens in circulation has increased exponentially. In 2013-2014, there were merely about 500 tokens. In 2017-2018, there were already about 3,000 tokens.

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In 2021, there were already approximated to be about 300,000 to 3 million, and now there are already over 36.4 million tokens in circulation, and the projections are that there will be 100 million in the future.

Meme Coins Siphon Off and Distract Liquidity

Exchanges like to list meme coins before quality projects so they can generate trading volume. Retail investors are caught up in these hype-driven schemes, buying highs and watching their investments drop 80% or more in a few days.

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With anyone being able to make a token within a few minutes, the market is flooded with low-quality projects, making altseason even more difficult.

Institutional Investors Prefer Bitcoin and Ethereum

With the Bitcoin ETFs ruling the roost these days, institutions are interested only in BTC and ETH. Dominance of Bitcoin remains above 60% with little room for liquidity to enter.

These would typically begin when Bitcoin is flat, but due to the recent rise in BTC, capital rotation into altcoins is behind the curve.

When Will Altseason Begin?

  • Liquidity must invest in quality altcoins, not meme coins
  • FOMO retail needs to return, bringing in new money to the market Until then, it’s all about survival.
  • Avoid meme traps, keep actual projects on top of your agenda, and stay patient.
  • Altseason is delayed, not scrapped.