At the end of 2024, the market optimism for altcoins was high, fueled by rising prices, speculation around altcoin ETFs, and expectations that Trump’s policies would ease regulatory pressure. However, as January 2025 unfolded, the market failed to meet expectations. So, what went wrong?
The Evolution of Crypto Investors
Over the past two market cycles, investor behavior has shifted dramatically. In 2017, new investors were more inclined to buy volatile assets like DOGE on spot markets, aiming for rapid gains. By 2021, the focus had shifted towards leveraged trading, with many newcomers speculating on futures markets instead of holding assets long-term.
Fast forward to 2025, and yet another transformation has taken place. Today’s traders are willing to pay high fees on DeFi platforms just to trade newly issued pump-and-dump tokens, often flipping them within 15-20 minutes for quick profits. The idea of holding assets long-term has become almost obsolete for these investors.
The New Speculative Mania
One of the most striking trends in 2025 is the massive influx of new low-value tokens. Many new investors, inspired by Trump Coin’s meteoric rise, have turned to platforms like PumpFun, where thousands of new tokens are issued daily with no real utility. According to CMC data, the number of crypto tokens on DeFi platforms has skyrocketed to 10.7 million, with 99.99% of them offering no real value.
The rapid rise of DeFi gambling has diverted liquidity away from centralized exchanges (CEXs). With thousands of tokens launching every day, many investors are lured into quick gains, neglecting the true value of long-term projects.
Will This Trend Reverse?
The big question is whether liquidity will eventually shift back to legitimate CEX-listed projects. While millions of useless tokens may continue to flood the market, major exchanges still list only 350-500 quality cryptocurrencies, many of which have the potential to evolve into long-term tech assets.
At some point, investors will recognize that real value lies in fundamentally strong projects rather than short-lived speculation. The true altcoin bull market will likely emerge when this transition happens. However, whether today’s short-term traders will ever embrace long-term investing remains uncertain.
For more insights on the future of altcoins and the crypto market, stay tuned to Dey There.
