Coin Metrics has released an analysis highlighting significant structural changes in the cryptocurrency market. As the crypto investment landscape expands, capital allocation is becoming more selective. Bitcoin's dominance continues to rise, while the growth of stablecoins and on-chain derivatives is squeezing the space for altcoins. The concentration in the altcoin sector is intensifying, with the top ten altcoins' market share increasing from about 70% to approximately 82% over the past five years. Since 2023, large-cap cryptocurrencies have outperformed mid-cap and small-cap coins.
The report examines whether market capital is gravitating towards fewer, larger, and more mature assets, noting that while the market is evolving, liquidity remains limited, and cryptocurrencies must compete with traditional assets. Although the threshold for sustained investment in altcoins has risen, developments in market structure, related ETFs, and favorable liquidity conditions could still catalyze altcoin markets, albeit with greater selectivity than before.
Coin Metrics Analyzes Structural Shifts in Crypto Market
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