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Over 40% of altcoins are trading at historical lows, according to CryptoQuant., 2026/03/31 11:15:06
Over 40% of altcoins are currently trading at their historical lows. The primary reason for this is the oversupply of new coins and the debt schemes of the funds responsible for their issuance, according to an analyst from the on-chain platform CryptoQuant, known by the pseudonym Darkfost.
He estimates that the current decline is more severe than in the previous bear market cycle, when the proportion of such assets reached approximately 38%.
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The analyst identifies a significant factor as the rapid dilution of liquidity across thousands of new projects. The market has become overloaded with supply, which intensifies pressure on prices and prevents most assets from maintaining stable value.
“Today, there are over 47 million cryptocurrencies in the industry. The leader in token generation is the Solana network with 22 million, followed by Base with 18 million and BNB Smart Chain with 4 million,” the expert noted.
He stated that this structure renders the market vulnerable: capital is distributed too thinly among a large number of assets.
Nevertheless, even under current conditions, there are opportunities for selective investments in more resilient projects. From a market dynamics perspective, the current phase may represent a period of significant “cleansing” within the sector.
The excessive number of tokens and weak business models are gradually being phased out, which could lead to a concentration of liquidity within a limited number of ecosystems in the long run, the analyst concluded.
Previously, the CEO of the market maker DWF Labs, Andrey Grachev, stated that cycles of active investments in altcoins are gradually becoming a thing of the past.
