The altcoin market is experiencing a significant downturn, with the CoinDesk 80 index down nearly 40% year-to-date in 2025. In contrast, major stock indices like the S&P 500 and Nasdaq 100 have risen by 17.5% and 18.1%, respectively. The CoinDesk 5 index, which tracks top-tier cryptocurrencies, has seen gains of 12% to 13% during the same period.
Despite a rebound in altcoin trading volumes to 2021 levels, activity remains heavily concentrated in the top 10 assets, which account for 64% of the total volume. Institutional investors are increasingly favoring Bitcoin and Ethereum, channeling funds through spot ETFs that offer regulated and liquid investment options. This shift highlights a growing preference for quality assets amid market volatility.
Altcoin Market Declines as Capital Shifts to Bitcoin and Ethereum
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