Foreign media reports that altcoins haven't disappeared from the market, but the phase of price increases driven solely by concepts and token issuance may be coming to an end. As altcoins continue to underperform relative to Bitcoin, market focus is shifting from "storytelling" to revenue, business operations, and the ability to integrate with new trends.

Altcoins are weaker than Bitcoin

The report, citing market opinions, states that, relative to Bitcoin, the total market capitalization of altcoins has fallen to its lowest level since 2022. Meanwhile, data from CryptoQuant also shows that, excluding Bitcoin and Ethereum, the altcoin spot market has seen net selling for 15 consecutive months, with the cumulative buy-sell volume difference falling to its weakest level since records began in 2020.

This means that the altcoin sector as a whole is still under significant selling pressure, and funds have not generally flowed back in. Based on this, the article argues that the current market is more like a continuous clearing out than a short-term correction.

CryptoQuant CEO Discusses Survival Conditions

CryptoQuant CEO Ki Young Ju stated that altcoins "haven't disappeared," but "pure narrative altcoins" are losing ground. He believes the era of profiting solely from token issuance is over; narrative remains important, but it's insufficient to support a long-term holding strategy.

In his view, projects more likely to survive in the future need to have a clearer business foundation and revenue streams, while also aligning with broader financial trends. The report mentions that he is more optimistic about DeFi projects with real revenue, platforms related to tokenized assets, and tokens capable of embracing the global trend of financial digitalization.

Tokenization and AI become new screening criteria

Ki Young Ju believes that each crypto bull market typically revolves around a core theme; in the past, it might have been DeFi or memecoin, and the next phase may shift to AI agents. According to this assessment, the beneficiaries won't be all tokens, but rather platforms and infrastructure that can align with the new theme.

The report also mentioned that tokenized assets are providing new alternatives for funds. Compared to some altcoins that may quickly go to zero, tokenized projects are seen as a sector closer to real-world financial needs. This also means that the altcoin market may continue to exist in the future, but it will become more differentiated internally.

The article also cites other market participants who say that projects like Chainlink, Ondo Finance, Near, and Sui, due to their association with tokenization or AI narratives, are still seen as potential beneficiaries by some investors. Meanwhile, Hyperliquid's HYPE has recently hit new highs, indicating that funds haven't completely left altcoins but are instead concentrating on a few projects with thematic support or fundamental advantages.