Key Takeaways
How badly are altcoins underperforming?
CoinMarketCap’s Altcoin Season Index hit 32/100, as 72 of the top 100 cryptocurrencies now trade 50% or more below their all-time highs.
What’s happening to its market capitalization?
The total altcoin market cap has dropped from $1.8 trillion in late October to $1.4 trillion currently, erasing $400 billion in value.
Altcoins are being impacted as Bitcoin collapses below $100,000. The BTC price drop wiped $400 billion from the total altcoin market capitalization and impacted sentiment.
The damage extends far beyond Bitcoin’s 23% drop from October highs. Major tokens suffered disproportionate losses in the last seven days.
Ethereum declined by over 6% to trade around $3,200, while XRP shed 1.8% and BNB dropped by more than 5%.
Other tokens, such as SOL, ADA, DOGE, HYPE, and LINK, have also declined by 9% or more over the last seven days.
Technical devastation
The percentage of Binance altcoins trading above their 200-day moving average—a critical health indicator—collapsed to bear market levels.
The chart shows a dramatic cliff dive through November as Bitcoin’s correction accelerated.
Source: CryotoQuant
Few projects maintain a bullish structure. Historical data shows that when this metric crashes to current levels, altcoin prices typically suffer for extended periods before recovery begins.
$400 billion vanishes from market cap
The altcoin market cap peaked at $1.8 trillion in late October before losing $400 billion in just a few weeks. The steady grinding decline accelerated as Bitcoin broke key support.
Current levels of around $1.4 trillion represent a complete reversal of the momentum seen in October.
Source: CoinGecko
The intraday chart from TradingView shows continued downward pressure at $238 billion, down from $239.78 billion just 24 hours earlier, with no signs of stabilization in sight.
Altcoin season canceled
CoinMarketCap’s Altcoin Season Index is 32/100 as of this writing. The index requires a score of 75/100 for “altcoin season.”
Current levels signal the opposite: maximum Bitcoin dominance with these tokens getting crushed.
Galaxy Research confirms the carnage: 72 of the top 100 cryptocurrencies trade 50% or more below all-time highs, highlighting the brutal punishment of speculative bets.
What’s next
Collapsing market cap, bearish technicals, and historically low metrics suggest further downside. Until Bitcoin finds a bottom and technical indicators improve, altcoins face an uphill battle for survival.
Traders rotate into Bitcoin and stablecoins, abandoning illiquid altcoins. Is this final capitulation before recovery, or just the beginning of crypto winter?
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