Bitcoin News Today: Altcoin Market Consolidates as 1.8 Million Tokens Vanish in Q1 2025

Over 7 million tokens now crowd the cryptocurrency market, but more than half—3.7 million—have already faded from relevance, with 1.8 million disappearing in just the first quarter of 2025 [1]. This mass exodus reflects a market in flux, where speculative hype has given way to a more discerning capital allocation. Investors are increasingly favoring projects with tangible utility, real user growth, and revenue generation over fleeting trends. This shift is reshaping the landscape ahead of the next altcoin season.

The decline in altcoin market share is stark. While Bitcoin continues to set new price records, altcoin dominance remains subdued, with many tokens dropping by 70 to 90 percent in value. Traders are left holding depreciating assets as capital consolidates around a smaller set of high-quality projects. This reallocation mirrors the dot-com crash of the early 2000s, where most speculative ventures failed, and only those with strong fundamentals survived [1].

Among the survivors are blue-chip DeFi protocols like Aave, Uniswap, and Lido, which continue to generate consistent fee revenue. Hyperliquid has also gained traction by building a high-speed blockchain to deliver on-chain derivatives trading akin to centralized exchanges. Emerging narratives such as AI integration, real-world asset tokenization, and compliance-friendly liquidity pools are attracting institutional interest, signaling a more mature market direction [1].

Coinbase’s Uniswap v4 “verified pools” and Aave Arc are examples of how infrastructure is evolving to meet new demands for security and transparency [1]. Analysts forecast that the next altcoin season will not be a broad-based rally but a selective boost for projects with clear revenue models, regulatory readiness, and strong user retention [1]. Traditional finance liquidity is expected to flow only to those that meet these criteria.

Technical indicators suggest a potential turning point. Bitcoinsensus noted a golden cross forming in the altcoin market cap charts, a pattern historically followed by major rallies [1]. If this trend continues, the surviving tokens may be the first to benefit from the next upswing. The altcoin season index currently stands at 37 out of 100, indicating that altcoins have not yet outperformed Bitcoin over the past 90 days but remain in a cautiously optimistic phase [6].

Ethereum has shown signs of outperforming Bitcoin and broader benchmarks [3], while altcoins like TON, IP, XDC, CRO, and TRX have posted notable gains. These projects are being supported by strong technical indicators and a crypto Fear & Greed Index still in “greed” territory [6]. DeFi has also seen a tentative recovery, with TVL approaching $135 billion, nearing pre-2022 levels [6].

Polygon (POL) has surged 7% in one day, with harmonic patterns pointing to further upside potential [7]. This performance, alongside Ethereum’s bullish momentum, indicates the altcoin market is gradually gaining traction as Bitcoin consolidation continues.

Despite these positive signs, the market is not yet in a full altcoin season. Analysts caution that stronger institutional buying and broader market participation are still needed for altcoins to take center stage [2]. Investors are advised to monitor key technical levels, resistance and support zones, and project fundamentals as the market evolves.

The altcoin space is at a critical juncture. While the speculative frenzy of 2021 has passed, the groundwork for a more structured and sustainable cycle is forming. Quality over quantity is now the rule, and those who navigate this shift with care may find themselves at the forefront of the next bull run [1].

Source: [1] HouseofChimera. "The Grand Flush Out: When Will Altcoin Season Truly Begin?" [https://x.com/HouseofChimera/status/1952394074574541102](https://x.com/HouseofChimera/status/1952394074574541102)

[2] AInvest. "Bitcoin News Today: Bitcoin Stalls Below $118000 Amid..." [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-stalls-118-000-short-term-correction-institutional-buying-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-stalls-118-000-short-term-correction-institutional-buying-2508/)

[3] Bankless. "Ethereum Season Is Here | How Far Can ETH Go? | Ben Cowen" [https://www.bankless.com/podcast/ethereum-season-is-here-how-far-can-eth-go-ben-cowen](https://www.bankless.com/podcast/ethereum-season-is-here-how-far-can-eth-go-ben-cowen)

[6] Pintu. "5 Resilient Altcoins that made the August 2025 'Chart of..." [https://pintu.co.id/en/news/188727-5-resilient-altcoins-that-made-the-august-2025-chart-of-the-week](https://pintu.co.id/en/news/188727-5-resilient-altcoins-that-made-the-august-2025-chart-of-the-week)

[7] AInvest. "Polygon (POL) Rises 7% as Harmonic Pattern Suggests..." [https://www.ainvest.com/news/polygon-pol-rises-7-harmonic-pattern-suggests-33-upside-potential-2508/](https://www.ainvest.com/news/polygon-pol-rises-7-harmonic-pattern-suggests-33-upside-potential-2508/)