altcoin

According to BBX data, yesterday the layout of traditional payment institutions in the cryptocurrency infrastructure showed divergence, with institutions having clear differences in their views on ETH and the altcoin sector. The core dynamics are as follows:Mastercard Incorporated (NYSE: $MA) signed an acquisition agreement for the UK stablecoin infrastructure company BVNK on March 17 for a maximum of $1.8 billion (including $300 million in performance-based payments), which directly led Mastercard to abandon its previously pursued strategic investment plan in Zerohash (a privately held company). According to CoinDesk on May 19, Mastercard exited negotiations with Zerohash after the completion of the BVNK acquisition, and Zerohash is currently seeking to initiate a new financing round with a valuation of over $1.5 billion (higher than the $1 billion valuation established during the D-2 round of financing of $104 million in September 2025); the strategic logic behind Mastercard's acquisition of BVNK is that BVNK has a stablecoin payment infrastructure covering over 130 countries and a difficult-to-replicate combination of multi-country payment licenses; Mastercard's Chief Product Officer Jorn Lambert stated that the goal is to integrate stablecoins into the core network of Mastercard Move cross-border payments, rather than treating them as a peripheral experiment.JPMorgan Chase & Co. (NYSE: $JPM) analysts cited by CoinDesk on May 19 released the latest research report indicating that in the current market environment, Ethereum and the broader altcoin sector will continue to lag behind Bitcoin, primarily due to three structural weaknesses: weak network activity, stagnation in DeFi ecosystem growth (Solana's TVL has dropped from a peak of $13.1 billion in 2025 to about $5.5 billion), and limited real-world adoption scenarios; analysts believe that for the altcoin sector to catch up with Bitcoin's performance, a "significant network activity explosion" is a prerequisite, and this condition currently lacks visible short-term catalysts.

As market risk appetite rebounds, altcoins have recently outperformed Bitcoin overall, with the Hyperliquid ecosystem token HYPE leading the 24-hour gains. Data shows that funds are shifting from Bitcoin and Ethereum to high-volatility assets, driving up certain DeFi and trading platform-related tokens. Analysts point out that improved risk sentiment among traders and active derivatives markets are important reasons for the recent outperformance of altcoins against BTC.

JPMorgan analysts pointed out in their latest report that although the overall cryptocurrency market has recovered after the Iran conflict, Ethereum and other altcoins continue to underperform compared to Bitcoin. The analyst team led by Managing Director Nikolaos Panigirtzoglou stated that this trend, which began in 2023, "is unlikely to change unless we see meaningful improvements in network activity, DeFi, and real-world applications."The analysts noted that since the conflict triggered a market sell-off, Bitcoin's recovery in spot ETF fund flows and institutional futures positions has outperformed Ethereum. The spot Bitcoin ETF has recovered about two-thirds of the previous outflows, while the spot Ethereum ETF has only recovered about one-third. CME futures positions also indicate that institutional investors are rebuilding their Bitcoin exposure more aggressively than Ethereum.Regarding the upcoming Ethereum upgrades (Glamsterdam and Hegota), analysts questioned whether they would be sufficient to improve ETH's relative performance. Upgrades over the past three years have primarily reduced Layer 2 transaction costs, which has weakened the Ethereum network's fee generation and token burn mechanisms, leading to an accelerated net supply growth and weakened price support. Whether the new upgrades can generate enough new demand and network activity remains to be seen.For altcoins, analysts believe that since 2023, weak liquidity conditions, low market depth and breadth, limited growth in DeFi activity, and recurring hacking and security incidents have collectively eroded market confidence and hindered the deployment of new capital.

According to The Block, JPMorgan analysts have stated that despite the overall recovery of the cryptocurrency market following the Iran conflict, Ethereum and altcoins continue to underperform Bitcoin. The analysts believe that unless there is a substantial improvement in network activity, DeFi, and real-world applications, this trend that began in 2023 is unlikely to change.The analysts pointed out that the spot Bitcoin ETF has recovered about two-thirds of the previously withdrawn funds, while the spot Ethereum ETF has only recovered about one-third. CME futures positions indicate that institutions are rebuilding their Bitcoin exposure more aggressively than Ethereum, with Bitcoin futures positions nearly fully restored, while Ethereum futures positions remain below previous levels.The analysts also questioned whether the upcoming Ethereum upgrade could effectively boost network activity. They noted that upgrades over the past three years have primarily reduced Layer 2 transaction costs, leading to lower Ethereum network fees, a weakened token burn mechanism, and accelerated net supply growth, which has undermined ETH's price support.Regarding altcoins, the analysts pointed out that poor liquidity, insufficient market depth, limited growth in DeFi activity, and repeated hacking incidents have eroded confidence and hindered the allocation of new capital.

JPMorgan analysts stated that despite the overall recovery of the cryptocurrency market after the Iran conflict, Ethereum and other altcoins continue to underperform Bitcoin. This trend, which has formed since 2023, may be difficult to reverse in the short term unless there is a significant improvement in network activity, DeFi, and real-world applications.The report pointed out that, based on spot ETF fund flows and institutional futures positions, the recovery of Bitcoin is stronger than that of Ethereum. The spot Bitcoin ETF has recovered about two-thirds of the previous outflows, while the spot Ethereum ETF has only recovered about one-third. At the same time, CME futures data shows that institutional investors are more actively rebuilding their exposure to Bitcoin, with Bitcoin futures positions nearly fully restored, while Ethereum futures positions remain below previous levels.JPMorgan believes that the relative weakness of ETH and altcoins against Bitcoin may continue due to the lack of stronger on-chain fundamentals and real-world application support.

10x Research released a report stating that the momentum of altcoins is fading in the early stages, while Bitcoin still dominates, and trading volume has declined again. The upward momentum of altcoins is hindered by the 30-day moving average, failing to break through; if it falls below this moving average, long positions should be closed.The report indicates that the best current positions are BNB (Grayscale ETF application, Coinbase roadmap, etc.) and TRX (Tron actively repurchasing treasury assets, Moscow Exchange launching the MOEXTRX index). Potential profit-taking may occur in: SUI (up 21% this week, CME futures launching on May 29, $143 million treasury staking), ONDO (up 18.4%, collaborating with JPMorgan and Ripple for the first tokenized treasury redemption, part of the infrastructure being built), TON (down 14%, due to security controversies and trust concerns triggered by the deletion of a well-known Telegram account). Avoid ETH, HYPE, TRUMP, MKR. HYPE dropped 9.9% after the ETF launch, a typical case of "buy the expectation, sell the fact."The report also lists three major catalysts for this week: the hearing on the "Clarity Act," Powell's power transition to Waller, and CPI/PPI data.

CryptoQuant analyst Darkfost stated that despite the challenges posed by the US-Iran conflict and inflationary pressures on the market, there have been recent signs of recovery in the altcoin market. He pointed out that after experiencing an overall correction of over 50%, the altcoin sector is gradually regaining activity. This round of adjustment is influenced not only by the BTC correction but also by the dilution of market tokens. Currently, there are approximately 51 million altcoins in the market, with 46% deployed on Solana, 36% on Base, and 10% from the BSC chain.He noted that the overall performance of altcoins listed on Binance has returned to levels seen since September 2025. Currently, about 21% of altcoins listed on Binance have regained their position above the 200-day moving average, while only 2% of tokens maintained above this key technical level in February of this year.Darkfost believes this indicates that market interest in altcoins is gradually rising, which is an important signal for investors looking to allocate to altcoins. However, he also emphasized that it is still too early to determine if the "altcoin season" has begun, as market liquidity remains limited.

According to on-chain analyst @ai_9684xtpa, an account that shorted a basket of altcoins has achieved a total profit of 86.36 million dollars, with current unrealized losses of 4.06 million dollars on 29 short positions; the shorting includes 28 altcoins such as ZEC, TON, NEAR, LIT, and CL crude oil, with a total position value of 47.66 million dollars, and is still continuing to increase its position.

Arthur Hayes stated at the Consensus Miami 2026 event that 99% of altcoins may drop to 0, which is a normal market cleansing. Since 1929, about 98% of companies in the S&P 500 index have gone to zero, and most stocks are also altcoins in the long run. The speed of the cryptocurrency collapse is faster due to 24/7 trading and lack of restrictions. It is suggested to view tokens as software, and most software projects fail due to inability to gain users, which is a common business norm.The price and future value of Bitcoin depend on the total amount of fiat currency and the speed at which fiat currency is created, unrelated to politics or regulation. Currently, the trading price of Bitcoin is about $82,000, and its utility lies in allowing users to transfer value outside of the traditional financial system. Centralized crypto companies seek regulation to protect their businesses, but this will not affect the validity of Bitcoin or cryptocurrencies.

CryptoQuant analyst Darkfost tweeted that Bitcoin has risen over 36% since the low on February 6. Meanwhile, Bitcoin's dominance has also increased, surpassing 61.3%, returning to the high since November 2025, indicating that funds are still highly concentrated in Bitcoin.In contrast, altcoins are still under pressure but have shown early signs of stabilization. TOTAL3 (the total market capitalization of all cryptocurrencies excluding BTC and ETH) has increased by about 15% during the same period. Among the altcoins listed on Binance, 11.7% have returned above the 200-day moving average (only 2.3% on February 6), breaking the downward trend since October 2025.Additionally, the trading volume of altcoins on Binance has risen from 31% to 49% of the total trading volume of BTC and ETH, indicating that investor interest is slowly returning.

CryptoQuant analyst Darkfost tweeted that during the current consolidation phase of the crypto market, investors are taking the opportunity to reassess asset allocation, adjust strategies, or review their overall exposure to the crypto market. Today, altcoins accounted for 51% of the total trading volume on Binance, which is in stark contrast to early March when altcoin trading volume significantly shrank to only 31% of the platform's total trading volume.Meanwhile, the market shares of BTC and ETH have both declined, currently accounting for 30% and 17%, respectively. Darkfost pointed out that although the overall market environment remains uncertain, there is currently a gradual rotation of liquidity from leading assets like BTC and ETH to altcoins.

Against the backdrop of easing tensions in the Middle East, Iran announced that the Strait of Hormuz is "fully open" during the ceasefire, leading to a rise in global risk assets. Boosted by the news, Bitcoin briefly surpassed $77,000, reaching a nearly two-month high, with an increase of about 5% in the past 24 hours. Major altcoins also rose, with Ethereum, XRP, and Solana recording gains of around 6%.Iranian Foreign Minister Seyed Abbas Araghchi stated that all commercial vessels can pass through the strait during the ceasefire with Lebanon, but must adhere to the "coordinated shipping lanes" set by Iran. The strait accounts for about 20% of global oil transportation and is a critical energy corridor. In traditional markets, the S&P 500 and Nasdaq Composite both reached historic highs, indicating a significant rebound in risk appetite. U.S. President Trump also posted on social media that "the Strait of Hormuz has reopened for commercial activities," but emphasized that Iranian vessels may still face blockade measures until the U.S.-Iran agreement is fully implemented.

According to monitoring by the cryptocurrency data agency Kaiko (@KaikoData), South Korea accounts for 30% of the global cryptocurrency trading volume, with altcoin trading making up as much as 85%, Bitcoin only accounting for 9%, and Ethereum at 6%, with a weekly trading volume of approximately $26 billion.In contrast, Japan's yen-denominated trading averages only between $2 billion and $3 billion per month, distributed across four exchanges, which is far less than South Korea. However, the depth of the Bitcoin market in Japan is 3 to 5 times that of South Korea, indicating that the liquidity quality in the Japanese market is superior.

Liquid Capital founder Jack Yi tweeted, "As Iran is willing to give up uranium enrichment as a compromise to end the war, the war is progressing towards a complete end as expected, hoping that world peace is not just an empty slogan. At the same time, the structural bill will eventually pass, and I remain optimistic about this rebound market, unless the guns start firing again.Recently, I've seen many people get liquidated in altcoin contracts. Altcoins themselves are high-risk, and adding contracts makes it a guaranteed losing game, especially when your opponent controls the chips, capital, and technology. Buffett is right; slowly getting rich is the best way. No matter how skilled you are, winning five times in a row and losing everything on the sixth is not a normal business model."

BIT released a chart today stating that cryptocurrency spot trading volume has significantly declined, with the average daily trading amount dropping from $41 billion in December 2024 to $26.6 billion in October 2025, and in the past 30 days it has fallen to only $8 billion.Spot trading volume is a key indicator of altcoin performance, reflecting market participation and risk appetite. The current contraction in trading activity helps explain the continued weakness of altcoins: sluggish trading activity translates into lackluster price trends and worsening market sentiment. For any sustained altcoin rally to truly kick off, a substantial rebound in trading volume is necessary.In the absence of clear catalysts, the likelihood of a broad-based rally is low. Current trading volume is concentrating on a few assets, and overall market participation remains relatively low.

CryptoQuant analyst Darkfost stated that over 40% of altcoins are currently trading at or near historical lows, a figure that exceeds the previous peak of about 38% during the bear market. The cryptocurrency market continues to be affected by escalating geopolitical tensions, with altcoins being hit particularly hard.Darkfost also mentioned that the large number of cryptocurrencies directly leads to liquidity dilution, making altcoins increasingly vulnerable. Data shows that approximately 47 million cryptocurrencies have been issued globally, with 22 million on the Solana platform, over 18 million on the Base platform, and 4 million on the BNB Chain.

Crypto analyst Willy Woo tweeted that the FTX bankruptcy liquidation team is selling off assets, including a large amount of locked SOL, and is selling locked tokens at a discount to hedge funds through legal agreements.After buying at over 60% off, the funds hedge price risks by shorting futures like SOL, obtaining about 70%-80% risk-free returns. Subsequently, other project parties and foundations sold locked tokens early to hedge funds and hedged through the futures market, transferring the "alpha" that should belong to ordinary investors to market-neutral funds, resulting in lackluster performance for most crypto projects from 2023 to 2025, while BTC outperformed relatively.Woo believes that the selling pressure related to the next market cycle may have been released in advance and advises ordinary investors to hold only BTC.

Cryptoquant analyst Darkfost pointed out that data shows the spot trading volume of altcoins on major exchanges has significantly declined compared to more active periods. Currently, Binance's altcoin trading volume is about $7.7 billion, while other major exchanges combined account for about $18.8 billion, far below the levels of $40 to $50 billion for Binance and $63 to $91 billion for other exchanges during the peaks in October 2025 and February. In relative terms, Binance currently accounts for about 40% of the total global altcoin trading volume.Analysis indicates that the aforementioned peak trading volumes coincide with the formation of a phase top in the crypto market, during which FOMO sentiment drove retail investors to flood in, while early investors took profits by leveraging the peak in demand. In the current environment, ongoing geopolitical tensions have suppressed market risk appetite, and altcoins continue to lag behind Bitcoin in performance. The analysis also suggests that historical patterns show that periods of low market interest, when most investors are on the sidelines, often represent the most attractive window for positioning.