Altcoin selling pressure has hit its highest level in five years, suggesting investors have largely exited speculative positions—even as a handful of narrative-driven tokens stage fleeting rallies.
Selling pressure in altcoins excluding Bitcoin and Ethereum, measured as the net difference between cumulative buys and sells, has reached -$209 billion, according to on-chain analytics platform CryptoQuant.
The metric has fallen sharply from near zero in January 2025, when demand roughly matched supply, with net selling now at levels last seen in 2021.
The exodus suggests retail and speculative capital have fled the altcoin market, leaving only brief, narrative-driven pumps that quickly reverse, a dynamic that favors short-term traders over longer-term holders.
"Net selling totaling -$209 billion reflects heavy retail exits and absent broad demand," Andri Fauzan Adziima, research lead at Bitrue, told Decrypt. Since institutional investors are largely focused on Bitcoin and a handful of major altcoins, Adziima said this is "more a one-sided retail dump than a joint exodus."
The sell-off in altcoins coincides with a substantial uptick in stablecoin flows, according to CryptoQuant’s stablecoin dashboard. Binance now holds nearly 65% of all exchange stablecoin liquidity—approximately $47.5 billion—further reinforcing the idea that investors have rotated out of altcoin positions.
"The $47.5 billion parked on Binance shows defensive 'wait-and-see' mode and liquidity concentration on the top platform, not full crypto exit," Adziima said, explaining that it signals cratering confidence.
Ryan Yoon, senior analyst at Seoul-based Tiger Research, echoed that framing.
"The fact that 65% of stablecoin liquidity is sitting on Binance suggests that investors are hunting for entry points, yet they keep getting caught in a 'dip under the dip,'" he told Decrypt.
Fleeting altcoin rallies
The crypto market has become dominated by minor narratives that propel select tokens higher for days before rapidly reversing amid Bitcoin's choppy price action.
WLFI, for example, jumped 20% ahead of Wednesday's World Liberty Forum, before shedding 7% from its intraday high of $0.128 during early Asian trading Thursday, according to CoinGecko data.
Despite persistent selling pressure and choppy market conditions, speculative altcoin trading has not waned, as reflected in a nearly 14% surge in altcoin dominance since mid-January.
That reflects investors and capital rotating away from Bitcoin amid choppy market conditions and into altcoins for speculative trading, Decrypt previously reported.
The prolonged choppy crypto market landscape is unlikely to change until structural demand returns, Adziima said.
Regardless, both analysts see only a handful of altcoins surviving in the long run.
Adziima predicts a "Darwinian shakeout" where only altcoins with real adoption survive, while most never reclaim their highs.
Yoon too expects a market-wide filter that separates viable projects from speculation as institutions handpick specific chains and link them to real token utility.
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