Wintermute OTC Data Shows Crypto Liquidity Clustered in BTC and ETH as Broader Altcoin Rallies Faded in 2025

Market liquidity in the cryptocurrency sector is increasingly concentrated in Bitcoin (BTC) and Ethereum (ETH), according to Wintermute OTC data. The broader altcoin rally that characterized 2025 has since faded, reflecting a return to core assets amid market uncertainty. This shift aligns with broader trends in institutional-grade infrastructure and DeFi development.

Institutional adoption of digital assets continues to expand, with companies like GenTwo integrating major exchanges like Binance into their platforms. This allows clients to construct and execute crypto-linked strategies with access to deep liquidity pools. The move is intended to meet growing demand for scalable, institutional-grade execution.

At the same time, new crypto projects are attracting attention through structured presales and tokenomics models. Mutuum Finance (MUTM), a decentralized lending and borrowing protocol, has raised over $19.7 million in its Phase 7 presale. The project's approach to collateral-based credit markets is drawing interest from a distributed base of investors.

Why Did Liquidity Shift to BTC and ETH?

The concentration of liquidity in BTC and ETH reflects both risk aversion and the maturation of the crypto market. During periods of volatility, investors often retreat to the most liquid and well-established assets. This pattern has been reinforced by macroeconomic factors and the increasing regulatory scrutiny of altcoins.

Market participants are also prioritizing execution quality and depth. For institutional investors, the ability to trade large positions without slippage is a key concern. BTC and ETH, with their deep order books and broad institutional support, offer a level of reliability that many altcoins cannot match according to market analysis.

How Did Markets React to New Crypto Projects and Infrastructure Developments?

Mutuum Finance's presale has shown signs of sustained interest. The token is currently in Phase 7 and has risen 300% from its initial price of $0.01. The structured allocation model, with 5% of the total supply reserved for each phase, has helped maintain steady demand.

ZKsync has also announced a 2026 roadmap focused on institutional adoption and privacy features. The platform plans to evolve its ZK Stack into an orchestrated system of public and private networks, emphasizing performance isolation and deterministic access rules. These features mirror traditional financial infrastructure and are seen as key to attracting institutional investors.

What Are Analysts Watching Next?

The institutional infrastructure space is attracting significant capital and strategic partnerships. BitGo's recent filing for an IPO, with a target valuation of $1.85 billion, signals growing investor confidence in crypto custody and security services. The company reported $10 billion in revenue for the first nine months of 2025, reflecting strong demand for compliant custody solutions.

Regulatory developments will also play a key role in shaping the market. BitGo's conditional approval to operate as a national trust bank in the U.S. highlights the increasing alignment between crypto services and traditional financial frameworks. This trend is expected to continue as more firms seek regulatory clarity.

As 2026 progresses, investors will be watching whether these infrastructure and product developments can sustain broader market growth. The shift from speculative altcoins to institutional-grade DeFi and custody services marks a maturing phase in the crypto industry. Whether this translates into long-term value creation will depend on execution quality and regulatory outcomes.