Analysts say that the steep drop in altcoins during the last year could be a reflection of a wider reassessment as to which blockchain networks will attract capital over the long term, since institutional investors are beginning a multi-year, gradual entry into the marketplace.
Bitcoin Excluded (BTCThe cryptocurrency market in 2025 is expected to experience a decline. Decentralized finance tokens (DeFis) fell 67%, while cryptocurrency associated with smart-contract blockchains had an average negative return of 66%. according Jamie Coutts is the Chief Crypto Analyst at Real Vision.
Last year’s performance has been a disappointment. “repricing” Coutts, in an article on Wednesday X wrote that the top crypto projects were seeking more exposure as they had institutional capital.
“Repricing the highest quality (network adoption, fundamentally sound) protocols/L1s, just as the multi-year onboarding of institutional capital commences,” “He said”
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Coutts has become the latest analyst in the industry to point out that cryptocurrency prices are constantly changing as investors look for tokens to power protocols with revenue and organic usage, rather than just generic altcoins.
According to Crypto Intelligence Platform, Solana, the blockchain with the highest revenue generated in the last year was Solana, followed by Tron, which had $576 millions. Nansen.
According to Nicolai Silbergaard at Nansen Research, large and institutional investors gravitate towards the top five cryptocurrencies.
“Solana ETFs are still seeing inflows, but the same can’t fully be said onchain. ETH, on the other hand, has seen some players rotate from BTC,” Cointelegraph quoted the expert as saying:
“Many expect that with liquidity coming back, big players prepare by accumulating, and this seems to be accurate based on onchain and offchain data.”
Related: $11B Bitcoin whale sells $330M ETH, opens massive $748M longs in top cryptos
Altcoin bear markets in 2025 still prompt institutions to launch altcoin investments vehicles
Morgan Stanley in the US, for example, has continued to introduce regulated cryptocurrency investment products despite last year’s disappointing performance.
Morgan Stanley filed to establish two cryptocurrency exchange-traded funds (ETFs) on Tuesday — one tied to Bitcoin and the other to Solana — followed by news on Wednesday The third ETF application, also made on Tuesday and relating to Ether.ETHThis is a sign of heightened crypto-push from Wall Street players.
The cryptocurrency market is expected to perform differently in 2026, according to industry experts.
Jack Yi said, “I am not a fan of the investment firms in Hong Kong.bullish” on crypto Fundstrat Global Advisors, reported Cointelegraph, predicted that the local Ether price would drop to around $1800 by the end of the 2026 first half.
Tom Lee, Fundstrat’s managing partner and co-founder, wrote an internal memo that also forecasted a rally in the future. “year-end,” Crypto markets are a “durable low” In the first quarter,
Lee is the Chairman of BitMine Immersion Technologies. The largest corporation Ether holder, with total Ether holdings of $13 billion.
Even so, excess leverage has still been accrued from last year. “cleared,” Bring cryptocurrency values back to “levels that meet institutional entry thresholds,” Lacie Zhu, a Bitget Wallet analyst, says there is a growing clarity in the regulatory landscape.
Bipartisan crypto legislation and more regulated crypto ETFs suggest that “2026 could mark a turning point from repricing to sustained accumulation anchored more in long-term institutional adoption,” Cointelegraph quoted the expert.
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Source: cointelegraph.com
