Altcoin markets endure selling pressure as liquidity shifts to BTC, memes and RWA tokens

Altcoin selling pressure reached an all-time high, as those assets suffered even deeper losses compared to BTC. Even worse, recovery may be months or years away, as there are rarely any signs of investors buying the dip. 

Altcoins are under overwhelming selling pressure, with no signs of buyers. The buy/sell quote volume ratio signals that selling is at an all-time peak, accelerating in the past weeks. 

Altcoin selling pressure increased exponentially, passing even the worst selling during the 2022-2023 crypto winter. | Source: Cryptoquant

While altcoins have offered relief rallies during previous market downturns, their higher volatility erased any real demand. 

Altcoins have historically sold off during BTC bear markets, but in 2026, the pace of selling is at its steepest, marking unprecedented records. 

The recent bear market may also cause the disappearance of another wave of projects, similar to other dead chains and coins. Even blue-chip tokens are seeing a sell-off, with only ETH showing signs of silent accumulation. 

Why are altcoin prices failing? 

Altcoins and tokens belong to projects that have had years to prove their utility. While some networks had success, others carried a minimal number of transactions. Despite the hype, those networks never carried an on-chain economy. 

Altcoin seasons were extremely brief, ending within days. Even the concept of blue-chip altcoins suffered, as most assets crashed deeply following the October 10 liquidation event. 

The altcoin season index stagnated around 30 points, only due to the underperformance of BTC. Most altcoins have erased the gains from their local peaks, and are unwinding in both dollar terms and against BTC. 

Altcoin liquidity spread to memes

Liquidity flowed to altcoins in expectation of eventual pumps. During previous cycles, even bearish altcoins outperformed. 

This time around, liquidity has spread to a much wider selection of tokens. The previous altcoin pumps were also unpredictable and required traders to wait for months. 

Meme tokens can deliver short-term rallies and do not require traders to lock funds for the long term. Some of the speculative and retail funds for altcoins moved back to the meme trenches. Other traders moved back to DEX swaps, as centralized exchanges carried a more limited selection of altcoins. 

Altcoin derivative trading also slowed down on centralized markets due to the more significant risk of liquidations. Some of the activity switched to perpetual futures DEXs. 

Additionally, some of the altcoin capital reverted to BTC, while others parked their gains in stablecoins and switched to DeFi for passive income.

Altcoin trading volumes also declined more rapidly during periods of corrections. In November, altcoins made up over 59% of Binance trading activity. By February, the share of altcoins had fallen to 33.6%, an almost 50% drop. 

The share of altcoin trading on Binance shrank in the past months, down to 33.6% of total volumes. | Source: Cryptoquant

The big question is whether there may be another altcoin market. For some, altcoins entered a bear market in 2022 and never really recovered. Only a handful of top assets with full DeFi ecosystems survived the previous crypto winter and remained as relevant projects. 

The recent volume shift showed BTC was seen as safer during periods of uncertainty and market stress. Аnother destination for available liquidity is the RWA markets, where tokenized metals replace some of the hot altcoins. 

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