As Bitcoin Strengthens Its Dominant Position in the Markets, the Kaiko Research Report Disrupts Expectations for 2025

Cryptocurrency investors may need to adjust their strategies in 2025. According to a report published in March 2025 by Kaiko Research in collaboration with Blockhead Research

As Bitcoin strengthens its dominant position in the markets, the Kaiko Research report disrupts expectations for 2025: forget the widespread altseason of the past, only a few carefully selected altcoins will thrive this year.

The altcoin market is entering a phase of strategic selectivity. Cryptocurrency investors may need to adjust their strategies in 2025. According to a report published in March 2025 by Kaiko Research in collaboration with Blockhead Research, the era of broad altcoin surges may be giving way to a more selective approach.

This significant shift can be explained by the evolving liquidity trends, the intensifying regulatory pressures, and the expanding footprint of Bitcoin within institutional capital.

The concentration of the altcoin market has reached historical highs. The data reveals that the top 10 altcoins now represent 64% of the total trading volume, compared to only 32% at the end of 2021.

This centralization has accelerated since the last US elections, creating an environment where some large caps like Solana (SOL) and XRP are progressing, while small and mid-cap tokens have seen a decline of more than 30% since the beginning of the year.

The Altcoin Season Index from blockchaincenter.net also confirms this trend with a score of 20, far from the threshold of 75 needed to declare a true altcoin season.

In practical terms, this means that only 10 cryptocurrencies among the top 50 have outperformed Bitcoin in the last three months.

Unfavorable macroeconomic factors are also compounding the difficulties for altcoins. The rapid rise in interest rates and the reduction of liquidity by central banks have significantly dampened the appetite for risky assets.

This climate contrasts sharply with the accommodative monetary policies that fueled the 2021 crypto boom.

Bitcoin, for its part, has benefited from the approval of spot exchange-traded funds (ETFs) in the United States, which drew over a billion dollars in trading volume on the first day.

This institutional legitimization has strengthened its dominant position, to the detriment of altcoins that face increased competition for capital.

The American political uncertainty index, now at record levels since the Covid-19 pandemic, has also pushed investors towards Bitcoin’s perceived stability in a turbulent environment.

This search for a safe haven partly explains the low activity on altcoin networks, a phenomenon already highlighted in a previous article: Crypto: Why is the altseason delayed?

The Kaiko Research report concludes that the traditional period of uniform altcoin rises could be replaced by a phase of “strategic selection.”

In this new paradigm, the success of an altcoin will depend essentially on three key factors:

This evolution marks a decisive turning point for crypto investors, who will now need to prioritize precision in the composition of their portfolios rather than aiming for broad diversification.

Fragile or truly useless projects risk being sidelined in favor of stronger alternatives that are better positioned to attract institutional investments. The recent collapse of 99% of memecoins on pump.fun is a stark illustration of this new market selectivity.

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