Altseason 'permanently canceled' as 36 million altcoins struggle—here's why

Since the beginning of 2025, altcoins have struggled a lot with leading digital assets such as Ethereum (ETH), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) all correcting at 35-40% each. Some market analysts believe that the altcoin season has been permanently canceled. Well-known Bitcoin analyst Jesse Myers noted that more than 36 million altcoins have flooded the market over the past few years. As a result, the value of the entire space has decreased significantly. Commenting on the situation, Myers said: "This only makes Bitcoin stronger." Bitcoin's Growing Dominance Amid Altcoin Decline With the number of altcoins on the market continuing to rise, cryptocurrency analyst Jesse Myers said there is a growing trend of Bitcoin dominance. According to Myers, while the number of altcoins has increased, their overall influence on altseasons has declined since 2021.

"Bitcoin's dominance has steadily increased as many altcoins fail to maintain relevance," Myers claimed. He also emphasized that even when altcoins fade, they rarely reach zero value. Instead, they typically trade at a minimum market cap of $10,000 or $100,000. The analyst pointed out that with more than 36 million such "illiquid residual funds," a large portion of the overall cryptocurrency market capitalization consists of dormant or illiquid coins. Furthermore, Myers added that "Bitcoin is now approaching effective complete dominance," emphasizing its strength while continuing to reduce the likelihood of an upcoming altcoin season. Why Bitcoin is winning but Altseason is delayed? Cryptocurrency analyst Jesse Myers highlighted three main reasons why Bitcoin won over altcoins, leading to a delayed altcoin season. He explained three main reasons why BTC strengthened its market position. Digital scarcity as a unique phenomenon: The birth of Bitcoin marked the beginning of digital scarcity, a groundbreaking initiative that could not be replicated. This one-time phenomenon propelled Bitcoin to the forefront of the cryptocurrency space. Network effects and the power of money: Money thrives on network effects, often centered around a single entity. Using game theory, the analyst explained that if 100 strangers were asked which cryptocurrency they believed would dominate, the answer would likely be consistent with Bitcoin. This concept, known as Schelling Point, reinforces Bitcoin's role as a central asset in the digital economy. Crypto Catch-22 blocks real competitors: The analyst also referenced "Crypto Catch-22," a structural challenge that prevents real competition from emerging against Bitcoin. This paradox ensures Bitcoin's unparalleled position in the market remains unchallenged. As mentioned in our previous report, even big companies like Goldman Sachs are investing in Bitcoin.