I view Bitcoin’s consolidation below $92,000 not as a lack of interest, but as a signal that capital is rotating toward areas with clearer utility and structural demand.

In this environment, the idea of a “classic altcoin season,” where speculative small-cap tokens broadly outperform, has failed to re-emerge and may be structurally changing.

Market indicators continue to reflect persistent Bitcoin dominance and underperformance across much of the altcoin landscape, reinforcing that shift.

As the industry matures, valuation is increasingly driven by real utility rather than speculative narratives.

The era where retail momentum alone could lift hundreds of tokens simultaneously is fading.

Capital today is far more selective, favoring projects that demonstrate tangible use cases, strong fundamentals, and institutional relevance.

This is evident in how liquidity has concentrated around core infrastructure layers and established networks, rather than thinly traded altcoins.

Another major force reshaping the market is the rise of RWAs and regulated digital products.

These offer institutions alternative ways to gain exposure and yield through compliant, lower-volatility structures, reducing reliance on speculative tokens as the primary growth vehicle.

As a result, capital is no longer forced into broad altcoin baskets to express risk appetite.

Taken together, these dynamics suggest that future altcoin outperformance will be selective and fundamentals-driven, tied to specific narratives such as DeFi infrastructure, real-world asset integration, or clear technological differentiation, rather than a blanket rally across all sub-$1B tokens.

This evolution reflects a market that is growing up, where quality and utility increasingly matter more than hype, reshaping how crypto cycles unfold in 2026 and beyond.

Gracy Chen, CEO of Bitget

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