Bitcoin dominance hits a new high: How much are altcoins being squeezed?

Question

【Crypto World】The flow of funds in the crypto market is undergoing significant changes. According to the latest analysis by Coin Metrics, a clear trend has emerged over the past five years: Bitcoin’s dominance continues to rise, and the market structure is being reshaped.

What exactly has changed? The market capitalization share of the top ten altcoins has increased from about 70% five years ago to approximately 82% now. This is not just a simple numerical change; it reflects a phenomenon where market funds are increasingly concentrated in leading and more mature assets. Meanwhile, the expansion of stablecoins and growth in on-chain derivatives businesses are both doing well, but their upward momentum is squeezing the survival space of small and medium-sized altcoins.

In other words, retail and institutional investors are becoming more cautious. The entry barriers are rising, and not all projects can attract liquidity. However, this does not mean that the altcoin market is completely hopeless. Changes in market rules, the potential launch of ETF products, and improved liquidity conditions could still create opportunities for certain projects. But the key point is—funds are now more selective, and their choices are significantly more discerning.

This essentially reflects market maturity. The era of FOMO among retail investors is receding, and institutionalized, rational capital allocation logic is now leading the market.

LightningClicker · Accepted Answer

Again and again talking about BTC dominance? It's been obvious for a while now, retail investors are finding it harder and harder to make money.

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The dream of small altcoins from ten years ago is really shattered now; top coins are becoming more and more popular.

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Eighty-two percent of the top ten altcoins? The remaining 18% are just casinos.

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Basically, retail investors are getting more sophisticated; they only dare to buy major coins.

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When stablecoins rise, altcoins become worthless. That logic is really ironic.

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Institutional entry is like this, crushing all mid-cap projects.

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I just want to know how those who entered in 2021 are doing now.

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Does the arrival of ETFs mean there's no hope left for small coins?

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Long-tail coins are dead, which is very normal.

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With such a clear capital aggregation effect, are people still betting on altcoins to turn things around?

LiquidatedAgain · Answer

Once again, I've been pushed out of the game. How are those small coins that all-in five years ago doing now...

Liquidation prices are dropping one after another, no chance to top up. The bottom-fishing myth is dead.

The big players are siphoning liquidity, retail investors are just drinking the soup—that's the current rule of the jungle.

Institutions are grabbing the bottom liquidity, while retail is chasing risk premiums. If only we knew earlier, it would have been worth it.

Altcoins? When the borrowing rate soared, it was time to run. That's a lesson I paid dearly for.

Even with ETFs coming, they can't save small and medium projects; the ecosystem is too thin, and a single liquidation link can end it all.

Thinking back to those old coins from five years ago, now they’ve all become stepping stones for trading pairs.

The market has matured, and risk control points are becoming more stringent. Small retail investors have no way out.

AirdropHarvester · Answer

Top eats meat, bottom drinks soup, small and medium coins are directly out

It's becoming increasingly difficult for retail investors to make money, and this is the real truth

Another round of big waves of淘沙, see who can survive until the next cycle

Basically, institutions are consolidating the market, retail investors are still in a daze

Are altcoins doomed to cool off? I don't think so, it depends on who can turn things around

Now I understand why those small coins are so hard to pump

Funds are grouping together, risks are concentrated at the top, and liquidity dries up as they play

Bitcoin dominates the market, and our withdrawal speed can't keep up

CryptoSourGrape · Answer

If I had known earlier that all the funds would flock to the top projects, I wouldn't have chased those broken knockoffs... Looking at these data now, I am so regretful that I feel sick to my stomach.

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The top ten coins have risen from 70 to 82, which is telling us that retail investors should wake up, really.

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Basically, it's institutions harvesting while we're taking the risk, no problem.

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Wait, so the small coins I bought last year are now completely out of the game? I am that small and medium project being squeezed.

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It would be great if an ETF had come out earlier. Now everything is dominated by Bitcoin, I’m so drunk.

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Stablecoins and derivatives are making money, while the underlying altcoins become cannon fodder. This is the reality, everyone.

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Raising the threshold, huh? What about my low-priced coins? I just want to buy the dip!

GasGuzzler · Answer

It's another head vampire show; the good days for small and medium coins are truly gone...

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82%? Retail investors are still sleepwalking and haven't realized it at all.

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The threshold has risen, and funds are concentrated. Is this called market maturity? I think it's big players harvesting small investors.

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Wait, can ETFs really save altcoins? It seems doubtful.

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Liquidity has been drained by the top players; how can anyone dare to launch new projects?

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Five years ago, you could still gamble on small coins doubling, but now it's all about paying transaction fees to exchanges.

Bitcoin dominance hits a new high: How much are altcoins being squeezed?

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