Altcoins Are Struggling — Here’s Why

In 2020, I dove into crypto, convinced I had found the future of finance. Like many, I made early mistakes — throwing 80% of my funds into one altcoin, only to watch it crash. That painful lesson taught me that hype isn’t enough — liquidity and real value matter.

Today, many altcoin investors feel the same sting. The common belief is:
“There are too many altcoins, and that’s why they’re underperforming.”

It makes sense. 40 million tokens have been created since 2021, flooding the market. But here’s the truth — most are worthless. The real issue isn’t just supply; it’s where the money is going.

Yes, the number of altcoins has exploded. But when we filter out the junk, only a few thousand have real liquidity and trading volume. The overwhelming majority of tokens have zero economic value.

If supply was the real issue, we’d see all altcoins crashing equally. Instead, the market is diluted, meaning money is spread too thin across too many projects.

When new altcoins launch, they take liquidity from existing ones. Instead of a few strong projects getting most of the investment, capital is divided among a growing number of tokens. This makes it harder for solid altcoins to attract sustained investor…