Altcoin Drawdown Surpasses Last Bear Market as 40% Near Record Lows

Analyst Darkfost reports that more than 40% of altcoins are currently trading at or near their all-time lows, surpassing the 38% peak seen in the last bear market. This drawdown is attributed to a combination of factors, including escalating geopolitical tensions and macro volatility impacting risk assets. A key structural issue is the proliferation of cryptocurrencies – now exceeding 47 million – leading to severe liquidity dilution, where investor demand struggles to keep pace with the massive supply. Experts like Matt Hougan of Bitwise Asset Management suggest that future cycles will favor projects with real-world traction over speculative momentum, and that a traditional 'rising tide lifts all boats' scenario is unlikely. Despite the current downturn, Darkfost notes that these extreme underperformances could present entry points for investors who can identify resilient projects.

(Source：BeInCrypto)