Altcoins Struggle: 40% Trading Near Historical Lows Amid Market Saturation

CryptoQuant analyst Darkfost claims that 40% of altcoins are currently trading near their historical lows. This is according to data from July 8, as reported by Jinse Finance. The analysis focuses on cryptocurrencies with prices more than 25% below their all-time highs (ATH). Darkfost's chart highlights the severity of the situation in the altcoin market.

The market has become increasingly saturated, with CoinMarketCap statistics showing over 53.5 million cryptocurrencies and approximately 60,000 new projects launching daily. This oversupply makes it challenging for most crypto projects to succeed without strong new liquidity entering the market.

When Bitcoin dropped below $60,000 in late June, this percentage even rose to 45%. The analyst emphasizes that investors must be cautious and selective when choosing projects to participate in, given the harsh reality faced by many altcoins.