Are Altcoins Facing Permanent Downturn? Only 29% of Leading Projects Surpass BTC This Year
Amid dwindling performance, only 29% of top altcoins have managed to outshine Bitcoin in 2025.
Since the close of 2024, market analysts anticipated a major surge in altcoins. As 2025 nears its end, those predictions have yet to materialize, indicating that an altseason may not occur due to the overall poor performance of most altcoins during this bullish cycle.
According to a tweet from crypto investor Daan, merely 29% of the leading 50 altcoins have outperformed Bitcoin this year. Investors remain optimistic; however, as the bullish cycle appears to be winding down, the likelihood of an impending altseason significantly diminishes.
Are Altcoins Doomed?
Historically, altcoins have thrived when Bitcoin’s dominance faltered, allowing liquidity to flow to other assets. This led to the belief that Bitcoin’s market share must decrease, enabling altcoins to rise. Oddly, the current cycle doesn’t conform to this trend.
With a few exceptions, the altcoin market has largely mirrored Bitcoin’s trajectory, either rising or declining in tandem. In some instances, altcoins even faced steeper declines than Bitcoin.
Currently, investors consider Bitcoin the primary asset, briefly switching to altcoins before reverting to Bitcoin. In the past six months, only 39% of top 50 altcoins succeeded in outperforming Bitcoin. The altcoin market has seen short-lived price increases, typically lasting only two to three weeks.
A Different Bull Run
Contrasting with historical data, previous bull runs saw altcoins rally extensively. Daan noted that the COVID-induced bull market from late 2020-2021 was the last time altcoins outperformed Bitcoin for an extended duration. Presently, analysts label most altcoins as “bounce-to-sell” opportunities. Tokens that have maintained significant price increases typically have solid structural backing and community support.
Some analysts foresaw this pattern earlier in the year, including Ki Young Ju, the founder of CryptoQuant. He expressed during last December’s market surge that this cycle’s expected altseason would not unfold as anticipated, insisting that most altcoins must cultivate their own ecosystems rather than rely on Bitcoin.
