Crypto : the altcoin collapse is worsening, 40% are already nearing rock bottom

Bitcoin’s start-of-the-month rally has pushed it close to https://strovemont-capital.com/ $70,000, with altcoins and the broader crypto market following suit. Risk assets across the board have taken hits, and crypto — altcoins above all — has absorbed some of the heaviest blows.Bitcoin Holds Up. The altcoin market also changed its profile, with more numerous listings, but lower overall value. The consensus is that some tokens may never return, due to a loss of liquidity. Despite this, altcoin open interest is still not down to all-time lows, retaining a relatively high baseline.

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Too many assets fight for liquidity that has become more selective. This does not mean that the entire altcoin universe is doomed. It means that the majority of weak projects risk being ignored longer than before. This latter idea is a coherent inference with the liquidity dilution described by several sources. Per the analyst, a combination of macroeconomic stress and structural issues within the crypto markets caused the weakness. Ongoing geopolitical tensions in the Middle East and the resulting instability in the traditional market have also put more pressure on risk assets, including cryptocurrencies.

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• These crypto coins have their own blockchains which use proof of work mining or proof of stake in some form.
• Some traders are still tracking older projects, expecting eventual new developments.
• Behind the price fall, there is a deeper problem in the crypto universe.

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Bitcoin Cash (BCH), Kaspa (KAS), and Hyperliquid (HYPE) were on the opposite end of the spectrum, dipping by 6%, 5%, and 4%, respectively. The number of cryptocurrencies has expanded to roughly 47 million, with about 44 million concentrated across Solana, Base, and BNB. This surge in token supply has fragmented liquidity, spreading capital thinly across an increasingly crowded market.

Macroeconomic uncertainty and geopolitical tensions have added weight to an already fragile market. Altcoin open interest has not recovered from the October 2025 drop. Overall open interest peaked at around $38B, before tanking to the current levels of $12B-$14B. This compression has reduced the number of assets positioned to benefit meaningfully from a recovery, concentrating potential upside in a smaller subset of tokens. Bitcoin has reacted appropriately, ending its five-month losing streak by closing March at a 1.81% gain. Over the past 24 hours, it reached an intraday high of $69,135 before retracing to around $68,690, up 3.1% on the day.

A deeper fall than during the last bear market

Analysts call it liquidity dilution — capital spread too thin to support the crowd. Behind the price fall, there is a deeper problem in the crypto universe. The total number of cryptocurrencies has exceeded 47 million, with about 22 million tokens on Solana, over 18 million on Base, and nearly 4 million on BNB Smart Chain. The crypto market has never had so many assets to absorb. The likes of Jupiter (JUP), Zcash (ZEC), and Shiba Inu (SHIB) had registered the best performances over a day, with upticks ranging between 8% and 6%.

These crypto coins have their own blockchains which use proof of work mining or proof of stake in some form. They are listed with the largest coin by market capitalization first and then in descending order. To reorder the list, just click on one of the column headers, for example, 7d, and the list will be reordered to show the highest or lowest coins first. There are now over 47 million cryptocurrencies in existence.

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CryptoQuant added that more than 40% of altcoins are currently trading near all-time lows, as the crypto market is suffering from geopolitical tensions and volatility in financial markets. Altcoins are under particularly heavy pressure due to the record number of cryptocurrencies — more than 47 million — which dilutes liquidity and makes them more fragile, analysts noted. In March 2026, more than 40% of altcoins are trading near their all-time lows.

For altcoins as a whole, long liquidations still dominate, due to the overall bearish trend with no relief rallies. Most of the altcoin long liquidations are happening on Binance, which has listed the latest wave of assets. In other words, the crypto market no longer seems ready to lift everything that moves. The next cycles could mainly reward projects that have real use, visible traction, and measurable utility. The rest could continue to lag, even in a more favorable environment. This is where Matt Hougan’s analysis, Chief Investment Officer at Bitwise, makes perfect sense.