An analyst on platform X has raised concerns that the crypto cycle for 2025 appears more challenging than anticipated, with significant altcoins showing little progress. The analyst known as Route 2 FI indicated that leading digital currencies like Solana (SOL), Ethereum (ETH), and Bitcoin (BTC) are trading near their December 2024 values, leading to widespread market frustration as identifying profitable trades becomes increasingly difficult.

Structural Weaknesses Across Altcoins

In a detailed message, the analyst noted that the current value of the top 50 altcoins has fallen below levels seen after the FTX collapse in 2022, highlighting a rapid decline in investor optimism. Factors such as a crowded market, ineffective tokenomics, and inflated initial values have made liquidity hard to achieve even for well-regarded projects.

His observations reveal a shifting market dynamic where traditional investment strategies no longer ensure profits. For instance, listings on centralized exchanges (CEX) no longer drive price increases, and tokens backed by venture firms often lead to intensified selling pressures post-unlock events.

The impact of this environment is severe, as a recent October sell-off has left over a million active traders with empty portfolios, potentially dissuading them from reinvesting in the crypto space soon.

“After Black Friday, around half of crypto traders lost everything, and many of them may never return to trading.”

During that downturn, Bitcoin experienced a drastic drop from over $122,000 to approximately $101,000, slightly recovering to $116,000, only to struggle again, falling under $104,000 amidst escalating geopolitical issues involving the U.S. and China.

Acknowledged Weakness Across Altcoins

Ethereum similarly dipped below $3,700, managing to rebound to $4,000, but remains down 18% from its peak value. Cryptos like Cardano (ADA), Hyperliquid (HYPE), SUI, and BNB have seen declines between 7% and 17% weekly, emphasizing the pervasive weakness in the altcoin sector. Route 2 FI’s remarks reveal underlying structural challenges rather than fleeting ones.

“Excessive tokens, unnecessary technology, projects lacking product-market fit, and ineffective tokenomics,” he said, underlining the gap between market supply and true demand.

He also noted that the influx of new tokens with high evaluations siphons capital away from established assets, intensifying competition in the market.

Adaptability as a Strategy Going Forward

Despite traders’ dissatisfaction with the current landscape, Route 2 FI advised that survival hinges on specialization. Those who cultivate unique skills are more likely to discover opportunities in a congested marketplace, be it through trading, content creation, or networking.

Being active on social media platforms like X can enable traders to connect with mentors, partners, and potential career avenues, even during stagnant market phases.