Analysts: Insufficient retail participation may delay altcoin market trends, and sector rotation may replace broad market rallies

ChainCatcher news, according to Cointelegraph, the activity of several mainstream public chains has significantly declined compared to the peak in 2021, indicating that the current altcoin market is still in a speculative phase. The total market capitalization of altcoins, excluding the top ten cryptocurrencies, is currently $277 billion, down 77% from the peak of $492 billion in November 2021.

Nansen analyst Nicolai Sondergaard pointed out that the altcoin market may be delayed due to meme coins attracting a lot of investor attention and funds. "The altcoin season will still come, but it may take a different form than before. There are currently more tokens and greater decentralization; while most are rising, specific sectors and tokens will see much larger increases than the rest."

Redstone co-founder Marcin Kazmierczak added that some altcoin prices are rising, but the number of active addresses has not increased, indicating that we are still in a speculative phase and have not yet entered a phase of widespread adoption.