More than 40 percent of alternative cryptocurrencies now trade at their all-time lows.
According to CryptoQuant analyst Darkfost, this marks the worst reading of the current market cycle. It is even worse than the previous bear market, when the share stood at about 38 percent.
The main driver is catastrophic liquidity dilution. The industry has created more than 47 million tokens. The leading blockchains for token generation are:
- Solana: 22 million tokens
- Base: 18 million
- BNB▼$560.86 Smart Chain: 4 million
The CoinMarketCap Altcoin Season Index sits at 46 points at the time of writing. That compares to a peak of 78 points in September 2025.
FTX Fallout Still Weighs on the Market
Analyst Willy Woo added that the market still feels the effects of the FTX collapse. Bankruptcy administrators sold large locked Solana holdings. Hedge funds bought those tokens at discounts exceeding 60 percent.
They then hedged their positions by shorting futures, earning nearly risk-free returns of 70 to 80 percent. This significantly limited organic altcoin growth.
Bitcoin’s Situation
Bitcoin has traded below $72,000 for about two months. Darkfost believes selling pressure on BTC▼$60,653.00 will persist in the coming months. This means breaking out of the $72,000 to $72,500 range could be difficult, and perhaps even impossible.
Historically, similar phases in previous cycles lasted six to ten months. Bitcoin’s fundamental characteristics remain strong. Liquid supply is decreasing due to lost and inactive coins.
However, short-term dynamics depend largely on macroeconomic conditions and Federal Reserve monetary policy.
Current Prices
At the time of writing, Bitcoin trades around $67,500 to $68,000. The asset recovered slightly over the past 24 hours. Still, it lost 4.5 percent over the past week and 8.8 percent over two weeks.
Overall, the top ten cryptocurrencies by market capitalization show mostly negative performance. The market remains sensitive to geopolitical news and expectations around Fed rates.
