Altcoins have been under sustained pressure for months as the broader crypto market grapples with a prolonged bear phase that began after the 2021 bull run. While Bitcoin has managed to hold onto some of its macro rally, most alternative cryptocurrencies have struggled to regain momentum, and many are still trading well below their previous cycle highs. This continued weakness reflects a decrease in liquidity, a weakening of investor appetite for speculative assets, and an increase in the concentration of capital in Bitcoin.
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According to a recent report by CryptoQuant, understanding the state of altcoins has become as important as tracking the price movement of Bitcoin when assessing the overall health of the crypto market. One indicator that provides insight into this dynamic is the “Altcoins Near ATL” metric, which shows the percentage of altcoins currently trading at an all-time low. In this framework, altcoins refer to all cryptocurrencies, except for Bitcoin, Ethereum and stablecoins.
The chart, produced by CryptoQuant Verified Author Darkfost, highlights the magnitude of the current market pressure. The data shows that around 38% of altcoins are trading near their all-time lows. In practical terms, nearly four out of ten altcoins are near their weakest price levels since inception.
Such readings typically occur during periods of intense market stress, when risk appetite deteriorates and investors shift capital to larger, more established assets.
Strong ATL readings reflect stress in the Altcoin market
The report explains that high readings in the “Altcoins Near ATL” metric tend to occur during periods of intense market stress. When a large percentage of altcoins trade to their all-time lows, it indicates that many assets are locked in long-term trends and investor sentiment toward high-risk cryptocurrencies has deteriorated significantly.
The main factor behind this dynamic is the concentration of capital in Bitcoin. Institutional flows, particularly through Bitcoin ETFs, are increasingly attracting liquidity to BTC, leaving many smaller tokens struggling to attract new demand. As more capital flows into Bitcoin, the relative share of investment focused on altcoins decreases.
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At the same time, the number of cryptocurrencies available on the market has grown rapidly in recent years. This increased supply of tokens intensifies the competition for capital, meaning that liquidity is spread throughout the vast universe of assets. As a result, many projects fail to provide sustainable interest to investors, increasing the likelihood of long-term price declines.
Macroeconomic conditions also contribute to this environment. Higher interest rates and tighter liquidity conditions tend to reduce risk appetite in financial markets. In such circumstances, investors typically turn to larger, more established assets, while speculative stocks face strong selling pressure.
However, historically, extreme ATL readings sometimes occur near the latter stages of market cycles, when selling pressure is already largely absorbed.
Altcoins are struggling to maintain key support
A weekly chart of the total cryptocurrency market capitalization excluding the top 10 assets shows long-term weakness in the broader altcoin sector. Currently worth about 170 billion dollars, this segment of the market remains significantly below the peaks recorded in previous periods, which is an indicator of the low quality of smaller cryptocurrencies.
After reaching a peak of around $450 billion in early 2022, the altcoin market has fallen in a broader bear market following the collapse of several major crypto companies and tightening global liquidity. Although the sector rebounded throughout 2024 and early 2025—briefly pushing the market capitalization into the $400 billion region—the momentum slowed again in late 2025, leading to the current downturn.
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Technically, the market cap is now trading above the 50-week and 100-week moving averages, both of which are down and acting as resistance levels. The 200-week moving average is located near the $200 billion zone, forming an important structural level that altcoins have recently lost. This distribution reinforces the broader bear structure that remains throughout much of the sector.
From a structural point of view, the chart continues the pattern of highs and lows. Unless the market recovers the $200-220 billion region, altcoins may be stuck in a prolonged consolidation phase while liquidity continues to concentrate in larger assets like Bitcoin.
Featured image from ChatGPT, chart from TradingView.com
