After two years of waiting for an “altcoin season” that never came, retail crypto traders have missed out on roughly $800 billion in potential gains by betting against Bitcoin’s dominance.
A new report from 10x Research shows that altcoins have lagged Bitcoin by that amount this cycle, marking one of the largest relative underperformances since 2017.
The data highlights a profound shift in market structure, which is now increasingly defined by institutional flows, Bitcoin ETFs, and risk aversion rather than the speculative rotation patterns that fueled prior bull runs.
Retail waits for a ‘ghost season’
Traditionally, an altcoin season describes a period when smaller cryptocurrencies dramatically outperform Bitcoin, absorbing capital from the benchmark asset and delivering short-term outsized returns.
In past cycles, most notably 2017 and 2021, Bitcoin profits cascaded into Ethereum, then into mid-caps and meme tokens.
However, 10x Research noted that this cycle has inverted that pattern. Instead of rotation, liquidity has consolidated around Bitcoin.
According to the firm, data shows investors have re-allocated heavily toward BTC-denominated products and away from higher-risk tokens.
It noted:
“Over the past 30 days, our tactical altcoin model has favored Bitcoin over altcoins, reflecting a bottoming out in Bitcoin dominance. This shift follows a 75-day period in which the model preferred altcoins, a phase that coincided with Ethereum’s rally, but that trend has clearly ended.”
Moreover, 10X Research stated that Korean retail traders, long considered the engine of altcoin speculation, have also abandoned the trade.
For context, Messari data shows that Upbit, the largest crypto exchange in South Korea, has seen its trading volume decline significantly this year as traders pivot to US-listed crypto equities such as Coinbase and MicroStrategy.
That migration, 10x Research argues, drained both liquidity and conviction from the altcoin complex.
Notably, CryptoSlate previous reports support this assertion, pointing out how altcoins have stalled in comparison to Bitcoin.
According to the report, Bitcoin’s market cap surpassed $2.3 trillion in early October, setting a new all-time high of around $126,000. Meanwhile, the total altcoin market cap (excluding stablecoins) has remained below its November 2021 peak of $1.6 trillion.
By mid-October, TOTAL2ES had only reached $1.48 trillion, about $120 billion short of its former high, even as Bitcoin exceeded its own by 84%. That gap is where 10x Research’s “$800 billion missed gain” figure originates.
10x Research wrote:
“Liquidity, momentum, and conviction have all migrated elsewhere, leaving the altcoin market eerily quiet.”
Given this, Coinperp’s Altcoin Season Index, which tracks how many of the top 100 tokens outperform Bitcoin over 90 days, was only able to peak above 70 in early September—below the 75 threshold that defines a true alt season, and has since slid back to 13 as of press time.
Altcoins fade
According to Bitget CEO Gracy Chen, the problem runs deeper than temporary sentiment.
She pointed out that venture capital investment in early-stage Web3 projects has fallen sharply, depriving the sector of fresh narratives and token launches.
Indeed, a Galaxy Research report revealed that crypto VC activity is significantly depressed compared to prior bull markets. In fact, the second quarter of 2025 was the second smallest since Q4 2020 for venture investment in crypto and blockchain startups.
Chen added that the recent Oct. 11 market shock, which wiped around $20 billion from leveraged crypto position holders, “dealt a devastating blow to altcoins.”
She added:
“Retail investors trading altcoins face a terrible risk-reward ratio.”
Considering this, the Bitget CEO said a broad-based altcoin season “will not come in 2025 or 26.”
Meanwhile, she noted that some possible exceptions might exist for projects issuing infrastructure tokens tied to real-world assets (RWA), stablecoins, and payment protocols.
Chen argues that these “infrastructure plays,” while unlikely to issue volatile native tokens, could anchor the next growth phase. Indeed, Ripple’s cross-border rails, Circle’s USDC ecosystem, and tokenized-treasury platforms already demonstrate that traction is shifting from speculation to service.
Yet, retail curiosity persists. Google Trends data show that global search interest for “altcoin” reached its highest level in five years this August, matching excitement levels last seen during Ethereum’s 2018 run-up.
How institutions rewrite the playbook
Unlike 2021’s retail-led mania, the current cycle has been shaped by institutional capital.
According to 10x Research, spot Bitcoin ETF approvals, corporate treasury participation, and yield-bearing stablecoins have redefined what counts as “safe” crypto exposure.
Notably, spot crypto ETFs have pulled record inflows of more than $40 billion in fresh capital this year, significantly outperforming other markets.
As a result, retail traders chasing fast returns on altcoins have found themselves sidelined. So, even modest rallies in assets like Solana or Avalanche have quickly fizzled amid thin order books and limited fundamental catalysts.
