- The altcoin market is heavily diluted with 36.4 million cryptocurrencies being traded in 2025.
- CEXs have prioritized listing of meme coins over good profits to boost their volumes.
- Only 1% of the people that invest money in meme coins make any profit, said Ash Crypto.
The altcoin season has been delayed this cycle while the market-leading cryptocurrency, Bitcoin (BTC), has made significant strides, notching notable milestones. Ether (ETH) continues to underperform compared to its peers, and investors are confused about why, despite growing adoption, altcoins aren’t soaring like they used to.
Crypto analyst Ash Crypto, with over 1.6 million followers on X (formerly Twitter), discussed this unusual situation on Sunday. The crypto analyst highlighted the importance of liquidity and cash inflow in altcoin rallies, adding that a major reason why cryptocurrencies are not skyrocketing is the growing number of crypto projects that continue to pop up in the market.
Ash Crypto noted that between 2013 and 2014, there were only 500 digital assets, and the number rose to 3,000 by 2017-2018. When the 2021 bull market came, the number of digital currencies jumped to 300,00-3,000,000. Now, in 2024, there are over 36.4 million cryptocurrencies, and the number is expected to reach 100 million in the near future.
Related: 2025 Altcoin Rally Predictions: LINK, DOGE, WLD, and More Insights
The analyst pointed out that the crypto market is heavily diluted, with leading exchanges being only interested in listing meme coins, where the retail capital flows in hopes of quick profit. “Retail buys these memes and are down 80% in a week and then quit,” said Ash Crypto, while adding that the ease of launching tokens is a major reason for this dilution.
Ash Crypto noted that CEXs prioritize the listing of memes to boost their user base while token insiders, developers, and exchanges pocket the profits. Only 1% of the buyers of these tokens actually make any money, said the analyst.
Altcoin Market Cap: Key Indicators
The analysis of the market cap of altcoins, other than BTC and ETH, shows that the Relative Strength Index (RSI) reads a value of 41.99, which means that altcoins have turned bearish on a daily time frame. Further, the gradient of the line suggests lower valuations.
Related: Bitcoin Dominance Mirrors 2020/2021 Pattern: What Could This Mean?
On the flip side, the MACD indicator has confirmed a bearish divergence, which means that the MACD histogram has now turned red and the signal line (red) is above the MACD line (blue), pointing to a massive increase in selling pressure.
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