Analyst: Altcoins Hold Key Support as Market Eyes Rebound
The altcoin market, valued at over $879 billion at the time of writing, appears positioned for a potential move toward its prior peak near $1.2 trillion, according to crypto trader and market analyst Michaël van de Poppe.
Van de Poppe said the Total3 market cap — which measures the total market capitalization of crypto assets excluding Bitcoin (BTC) and Ether (ETH) — has held a key support area around the $784 billion level.
TradingView data also show the gauge is edging back toward its 365-day moving average, another level viewed as significant.
Source: Michaël van de Poppe
In October, Total3 reached an all-time high near $1.2 trillion before a market-wide crash led to a one-day decline of about 33% in the total altcoin market capitalization.
Market participants are assessing whether a new altseason could emerge following a lackluster 2025 that diverged from prior cycle patterns.
Investors waited in 2025, but altseason did not arrive
Historically, investors rotated BTC gains into higher-risk altcoins during late-cycle phases, partly guided by Bitcoin’s four-year cycle framework. However, after a disappointing 2025 for BTC — when the yearly candle closed red, a first in a post-halving year — some analysts say the four-year cycle thesis has been invalidated.
The number of cryptocurrencies has also expanded sharply. There are over 29 million listed coins on CoinMarketCap, all competing for limited investor capital and attention.
The number of crypto tokens tracked on CoinMarketCap. Source: CoinMarketCap
Some analysts contend the proliferation of tokens has saturated the market and delayed the onset of a broad-based altseason.
Analysts also note that the emergence of crypto exchange-traded funds (ETFs) has altered market dynamics by creating liquidity siloes for ETF-eligible assets, keeping funds within those vehicles rather than circulating through the broader crypto ecosystem.
According to these views, this has limited the rotation of capital from potential Bitcoin gains or other tokens into altcoins and has muted the altseason phase seen in earlier cycles.
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