About 38% of altcoins are now trading near their all-time lows, the worst reading of the current market cycle and deeper than the aftermath of the FTX collapse in late 2022.
The data, published by CryptoQuant analyst Darkfost, tracks 756 tokens and found 294 of them hovering close to their lowest recorded prices.
The metric hit 37.8% just after FTX imploded and stood at 35% in April 2025. Its steady climb through early 2026 points to broadening weakness across the altcoin market even as Bitcoin (BTC) consolidates above $65,000.
What Happened
Darkfost attributed the deterioration to fragile liquidity conditions. Capital that might have once rotated into smaller tokens is instead flowing toward equities, commodities and safe-haven assets. Gold has topped $5,000 this year.
Bitcoin dominance - its share of total cryptocurrency market capitalization - sits near 57%-58%. That ratio has not dipped below 50% since September 2023, leaving altcoins with a shrinking slice of available capital.
The total altcoin market capitalization excluding Bitcoin and Ethereum (ETH) has fallen to roughly $550 billion, down from a cycle peak near $974 billion, according to TradingView's TOTAL3 chart.
CryptoQuant separately noted that selling pressure in the altcoin market recently reached its highest level in five years.
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Why It Matters
The comparison to the post-FTX period is notable because that crash was triggered by a specific event - the rapid unraveling of a major exchange.
The current deterioration, by contrast, has been gradual and driven by macro conditions rather than a single catalyst.
Geopolitical tensions, including recent U.S.-Israeli strikes on Iran, triggered over $300 million in cryptocurrency futures liquidations late last week, with altcoins absorbing a disproportionate share.
What Comes Next
Analysts remain divided.
Michaël van de Poppe wrote on X that Bitcoin could reach $75,000-$80,000 in March, which may widen the divergence with altcoins rather than narrow it.
The Federal Reserve's March 18 rate decision will also weigh on risk appetite.
Darkfost himself noted that severe deterioration has historically preceded opportunities - though he stopped short of calling a bottom.
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