It may sound contradictory, but more and more analysts are concluding that the emergence of “too many” tokens could threaten the future of altcoins. Currently, tens of millions of different tokens are flooding the market, and according to analysts, this could mean that there may never be another altseason again.
No More Altseason?
An altseason refers to a market phase where altcoins outperform Bitcoin. In the past, this has been a recurring trend during every bull market, but analysts believe this time could be different.
The primary reason is the creation of millions of new altcoins. Everyone is hoping to profit from the hype by launching their own token, but in the end, capital is required for their value to increase.
With such a massive selection of altcoins now available, it has become increasingly difficult for projects to establish themselves as winners. One could argue that this oversupply is leading to confusion among investors, who no longer know where to allocate their funds.
Today, there are over 36.4 million altcoins, compared to just 3,000 during the 2017-2018 altseason. In 2013-2014, there were fewer than 500, according to Ali Martinez, citing data from Dune Analytics.
Supply Outstripping Demand
Economist Alex Krüger has also noted that the crypto market has changed significantly.
“Too many tokens. Infinite more to come. Supply of tokens is greater than demand. This illustrates why expecting an “alt season” where everything goes up for an extended period of time is misplaced. Alt season will continue to happen, but for shorter spans, from a few days to a few weeks at most.”
Krüger further predicts that future altseasons will be much shorter, likely lasting only a few days to weeks.
Additionally, he points out that constructing a portfolio has become significantly more challenging. Choosing the right coins is now increasingly complex, as the market has few recognizable selection criteria.
In traditional stock markets, investors can evaluate companies based on promising products or financial performance. In contrast, with altcoins, there is often little to no tangible value behind them.
Even well-known names like Solana and Ethereum still face uncertainty regarding their long-term adoption over the next 10 to 20 years. At this point, Bitcoin remains the only cryptocurrency with a proven, real-world application.
