Altcoin season is over: Here’s what can make a project thrive | Opinion
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The crypto industry has evolved since Satoshi Nakamoto introduced Bitcoin (BTC) in 2009. The revolutionary innovation that birthed Bitcoin also paved the way for countless altcoins. While Bitcoin has retained its dominance and uniqueness over the years, the growing number of altcoins has changed how investors view the crypto market.
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There was a time when altcoins felt like the next big thing. During the 2017-2018 ICO boom, developers focused on utility, and the total number of tracked altcoins hovered around 3,000. Today, data from CoinMarketCap reveals a staggering figure: over 13 million altcoins now exist.
With that, established projects, like Solana (SOL), have become the go-to blockchains for memecoins, because creating a memecoin is now as simple as posting a meme. Projects once drove crypto adoption through white papers and tech promises, but now, in a crowded market, attention is the scarcest resource.
The quantity crisis: Too many coins, too little value
While the official altcoin count is 13.24 million, the actual figure likely exceeds 36 million. In theory, such explosive growth could signal a thriving ecosystem if these tokens delivered real value. Yet, most of the assets in circulation are born out of the lingering memecoin mania.
As part of the industry’s evolutionary trend, there has been a shift from a core dev focus to building new products. Today, protocols have solutions for users to launch their tokens with just a few clicks, resulting in a new wave of largely unvetted assets.
The crypto industry remains plagued by an old problem—oversaturation. Countless creators treat token launches as get-rich-quick schemes. Most tokens gain relevance based on short-lived hype and lose it shortly after launch.
Previous altcoin eras have driven technological breakthroughs, with altcoins, like Ethereum (ETH), ushering in a new generation of composable layer-1 solutions with functional smart contracts. This enabled developers to build the foundational applications that gave rise to decentralized finance and non-fungible tokens.
Historically, tokens from innovative projects delivered value. This is no longer the case, as too many speculative assets have overshadowed true builders in the industry today.
Narrative control, memes takeover
The cryptocurrency ecosystem has many layers of stakeholders that keep the industry functional today. In its formative years, venture capital firms played a crucial role by selectively funding projects with strong product-market fit.
In the early days of altcoins, VC endorsement served as the gold standard for project credibility, with retail investors closely following these market movers.
Today, the crypto industry is undergoing a major shift—away from purely technical development and toward influencer-driven marketing and community-led growth. Now, projects often skip traditional VC funding and go straight to communities via DAOs and viral Telegram or Discord groups.Â
There’s no denying that this trend creates a major concern for the industry, as altcoins hold a distinct position in web3. This year, as much as $70 billion is set to be unlocked from vested altcoins, further diluting the market valuation. In contrast, Bitcoin ETF inflows have reached just $40 billion, a classic case of massive supply and weak demand.
Since most technical advancements target mainstream crypto users, it becomes challenging for altcoins with strong fundamentals to compete against memecoins offering instant gains. One may argue that unless meme coins stop consistently outperforming utility-driven altcoins, the market’s true valuation will be dominated by unsustainable assets with fleeting lifespans.Â
With influencers—with their engaged audiences—cutting through the noise faster than any code commit, it’s easy to dismiss this as a distraction, a sign that crypto has lost its way. But what if the opposite is true? What if the hype isn’t replacing development—it’s funding it by bringing liquidity, users, and attention?
Influencers will claim the market soon
Indeed, any enduring innovation must be built on strong fundamentals, and crypto is no exception. Despite the observable trend of altcoin dominance, the ETH/BTC ratio signals a shift worthy of note.Â
This ratio is a multi-year low, indicating low confidence in altcoins compared to Bitcoin. This signals a broader retreat from risk assets and a return to fundamentals. As altcoins gradually lose relevance, the entire ecosystem—including builders and investors—needs to adapt strategies accordingly.
As key drivers of crypto’s evolution, altcoins will ultimately see a focus shift to projects with sustainable revenue models and engaged communities.
Attention is becoming as important as the tech itself. Projects can’t just build in a vacuum anymore—if they want to last, they need to figure out how to connect with people and grow real followings around what they are doing to keep them invested, both literally and emotionally.
Builders who leverage this transition—shifting dominance from traditional VCs and exchanges to those who shape narratives and mobilize supporters—effectively, will find themselves operating in a more capable ecosystem. They will be defining which tokens thrive and which disappear in a sea of forgotten assets.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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Forest Bai
Forest Baiis the co-founder of Foresight Ventures, a Web3 investment firm shaping the future of blockchain through bridging collaborations East and West. At the forefront of fostering global innovation, Forest has spearheaded Foresight’s support for groundbreaking projects such as Aptos (APT), TON, Morph, and Sei Network (SEI). A graduate of Tsinghua University, Forest combines a deep understanding of finance with a forward-looking approach to technology. With over a decade of venture capital and entrepreneurial experience, he is widely recognized for his ability to identify transformative opportunities and guide startups toward global success. Forest’s philosophy extends beyond financial investments. He is a trusted voice in the web3 community, offering insights into innovation and shaping the future of decentralized finance.
2025-05-12 21:31:19
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