The high leverage ratios offered by stock exchanges have steered investors away from buy and hold strategies toward short-term gambling. Tung stated that this situation has benefited market makers and exchanges, and that frequent liquidation events have prevented the market from naturally rising.
Tung stated that investors are now spending time on prediction markets, such as Polymarket, instead of altcoins, which are no longer beneficial. He added that individual investors have completely lost confidence in small and medium-sized projects.
Another notable point for 2025 and 2026 was the massive increases in gold and silver prices. During this period, when silver gained nearly 200% in value, some of the liquidity expected from cryptocurrencies shifted to these traditional safe havens.
Investors have long wondered why an altcoin season hasn’t materialized. Two primary factors are shaping the current dynamic: high leverage on traditional stock exchanges has pushed traders from long-term holdings toward short-term bets. This shift benefits market makers and exchanges and has led to frequent liquidations, which dampen upside in the market.
A second force is the rise of prediction markets like Polymarket, which have drawn attention away from altcoins. These markets focus on forecasts for elections, weather, and other events, reducing perceived value in smaller crypto projects. As a result, individual investors have largely lost confidence in small and mid-sized projects.
A further trend for 2025 and 2026 is the surge in gold and silver prices. With silver rising nearly 200%, some liquidity that would have gone to crypto assets shifted to traditional safe havens. This reallocation helped mute the overall crypto rally and reshaped capital flows across markets.
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