The crypto market has sparked fresh debates among analysts about whether the era of altcoin season is nearing its end.
Market analyst Ali Martinez highlighted how the sheer number of tokens has reshaped the crypto industry.
According to his January 25 post on X, the market now holds over 36 million altcoins, a rise from fewer than 3,000 in 2017-2018 and fewer than 500 in 2013-2014.
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Sharing data from Dune Analytics, Martinez stated, “With such massive supply, the market has changed significantly”. This surge in supply, he argues, makes prolonged price rallies across many altcoins unlikely.
Similarly, Alex Krüger pointed out that the overwhelming supply of tokens far exceeds demand. Writing on X, he explained:
Too many tokens. Infinite more to come. Supply of tokens is greater than demand. This illustrates why expecting an ‘altseason’ where everything goes up for an extended period of time is misplaced.
Krüger predicts that future altcoin rallies will be much shorter, often lasting only a few days or weeks. He also noted that the growing number of tokens makes investing more complex. “Being a good coin picker is now very hard”, he said.
Despite oversupply concerns, not all experts are bearish on altcoins. Michaël van de Poppe believes that specific tokens with practical uses could still draw institutional attention. He stated, “I think that we’ll also see real utility coins take the spotlight as institutional interest continues to grow”.
Meanwhile, the Official Trump (TRUMP) token, a meme coin associated with US President Donald Trump, recently saw its value decline. What happened? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
