Altcoins have been under sustained pressure for months as the broader crypto market continues to grapple with a prolonged bear phase that began after the 2021 bull cycle. While Bitcoin has managed to maintain some of its macro uptrend, most alternative cryptocurrencies have struggled to regain their momentum, with many still trading well below their previous cycle highs. This continued weakness reflects declining liquidity, declining investor interest in speculative assets, and an increasing concentration of capital in Bitcoin.
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According to a recent CryptoQuant report, understanding the state of altcoins has become as important as tracking Bitcoin’s price movements when evaluating the overall health of the crypto market. One indicator that provides insight into this dynamic is the ‘Altcoins Near ATL’ metric, which measures the percentage of altcoins currently trading near their all-time lows. In this framework, altcoins refer to all cryptocurrencies with the exception of Bitcoin, Ethereum and stablecoins.
The chart, developed by CryptoQuant Verified Author Darkfost, highlights the extent of the current market stress. Data shows that about 38% of altcoins are trading near their historical lows. Practically speaking, almost four in ten altcoins are hovering close to their weakest price levels since launch.
Such figures typically emerge during periods of extreme market stress, when risk appetite deteriorates and investors shift capital to larger, more established assets.
Extreme ATL readings reflect stress in the Altcoin market
The report explains that elevated values in the ‘Altcoins Near ATL’ metric typically emerge during periods of intense market stress. When a large percentage of altcoins are trading close to their all-time lows, it indicates that many assets are stuck in long-term downtrends and that investor sentiment toward higher-risk cryptocurrencies has deteriorated significantly.
A major factor behind this dynamic is the concentration of capital in Bitcoin. Institutional inflows – especially through spot Bitcoin ETFs – have drawn increasing liquidity into BTC, leaving many smaller tokens struggling to attract new demand. As more capital flows into Bitcoin, the relative share of investments in altcoins shrinks.
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At the same time, the number of cryptocurrencies available on the market has increased rapidly in recent years. This growing supply of tokens intensifies competition for capital, meaning liquidity is spread across a larger universe of assets. As a result, many projects fail to generate sustained investor interest, increasing the likelihood of long-term price declines.
Macroeconomic conditions also contribute to this climate. Higher interest rates and tighter liquidity conditions tend to reduce risk appetite in financial markets. Under such circumstances, investors typically focus on larger and more established assets, while speculative tokens face stronger selling pressure.
Historically, however, extreme ATL values have sometimes appeared in the later stages of market cycles, when most of the selling pressure has already been absorbed.
Altcoins struggle to maintain key support
The weekly chart of total cryptocurrency market capitalization, excluding the top 10 assets, highlights continued weakness in the broader altcoin sector. This market segment is currently around $170 billion and remains significantly below the peaks recorded during previous cycles, reflecting the continued underperformance of smaller cryptocurrencies.
After peaking at nearly $450 billion in early 2022, the altcoin market suffered a steep decline during the broader bear market that followed the collapse of several major crypto companies and the tightening of global liquidity. Although the industry rebounded in 2024 and early 2025 — briefly pushing the market cap back toward $400 billion — momentum waned again in late 2025, leading to the current downturn.
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Technically, the market cap is now trading below the 50- and 100-week moving averages, both of which are trending downward and act as resistance levels. The 200-week moving average is near the $200 billion region and represents a crucial structural level that altcoins have recently lost. This collapse reinforces the broader bearish structure that has persisted across much of the sector.
From a structural perspective, the chart continues to show a pattern of lower highs and declining momentum. Unless the market can reclaim the $200 to $220 billion region, altcoins may remain trapped in a prolonged consolidation phase as liquidity continues to concentrate in larger assets like Bitcoin.
Featured image of ChatGPT, chart from TradingView.com