Crypto Overcrowding: The Actual Motive Altcoin Season Stalled

• The altcoin market is closely diluted with 36.4 million cryptocurrencies being traded in 2025.
• CEXs have prioritized itemizing of meme cash over good income to spice up their volumes. 
• Only one% of the folks that make investments cash in meme cash make any revenue, mentioned Ash Crypto.

The altcoin season has been delayed this cycle whereas the market-leading cryptocurrency, Bitcoin (BTC), has made vital strides, notching notable milestones. Ether (ETH) continues to underperform in comparison with its friends, and buyers are confused about why, regardless of rising adoption, altcoins aren’t hovering like they used to. 

Crypto analyst Ash Crypto, with over 1.6 million followers on X (previously Twitter), mentioned this uncommon scenario on Sunday. The crypto analyst highlighted the significance of liquidity and money influx in altcoin rallies, including {that a} main cause why cryptocurrencies are usually not skyrocketing is the rising variety of crypto initiatives that proceed to pop up available in the market.

Ash Crypto famous that between 2013 and 2014, there have been solely 500 digital belongings, and the quantity rose to three,000 by 2017-2018. When the 2021 bull market got here, the variety of digital currencies jumped to 300,00-3,000,000. Now, in 2024, there are over 36.4 million cryptocurrencies, and the quantity is anticipated to achieve 100 million within the close to future.

Associated: 2025 Altcoin Rally Predictions: LINK, DOGE, WLD, and Extra Insights

The analyst identified that the crypto market is closely diluted, with main exchanges being solely fascinated by itemizing meme cash, the place the retail capital flows in hopes of fast revenue. “Retail buys these memes and are down 80% in every week after which give up,” mentioned Ash Crypto, whereas including that the convenience of launching tokens is a serious cause for this dilution. 

Ash Crypto famous that CEXs prioritize the itemizing of memes to spice up their person base whereas token insiders, builders, and exchanges pocket the income. Only one% of the patrons of those tokens truly make any cash, mentioned the analyst.

Altcoin Market Cap: Key Indicators

The evaluation of the market cap of altcoins, aside from BTC and ETH, reveals that the Relative Power Index (RSI) reads a worth of 41.99, which signifies that altcoins have turned bearish on a day by day time-frame. Additional, the gradient of the road suggests decrease valuations.

Associated: Bitcoin Dominance Mirrors 2020/2021 Sample: What May This Imply?

On the flip aspect, the MACD indicator has confirmed a bearish divergence, which signifies that the MACD histogram has now turned purple and the sign line (purple) is above the MACD line (blue), pointing to an enormous improve in promoting stress.