DWF Labs’ managing partner Andrey Grachev has said that the traditional altseason is fading. He argued that the market structure has fundamentally changed from the past pattern in which broad altcoin rallies drove overall market gains. He cites a surge in new token supply, a relatively smaller pool of participants, and liquidity being absorbed by regulated products such as Bitcoin and Ethereum ETFs as key drivers.
As a result, institutional capital is increasingly allocated toward Bitcoin, Ethereum, and tokenized real-world assets (RWAs), dispersing interest and funds away from the altcoin sector. Grachev warned that the cadence of market narratives forming and fading will shorten, and sector rotation could become more acute. This dynamic suggests many late-stage altcoins may resemble high-risk venture investments or gambling-type assets, making simple hype insufficient for survival.
On-chain and market-cap data show about $209 billion left the altcoin market over the past 13 months. Approximately 38% of altcoins are near historical lows, indicating that investor sentiment in the altcoin sector remains severely subdued.
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