CMC News

Institutional Capital Targets Established Altcoins Over New Tokens

Maen Ftouni, CEO of algorithmic trading firm #CoinQuant, expects older cryptocurrencies with existing or anticipated exchange-traded funds to capture the majority of capital during the next #altcoin rally. The executive described these established tokens as "dinosaur" coins that will concentrate liquidity away from newer projects.

Ftouni explained at the Global Blockchain Congress 2025 in Dubai that not every token will deliver substantial returns. He stated that liquidity flows into specific areas, with dinosaur coins representing a primary destination for institutional funds currently entering the #crypto market.

The CoinQuant chief attributed the 2024 rally in tokens like $XRP and $ADA to this phenomenon. He noted that capital flowing from traditional finance and #ETFs focuses on major established coins with potential ETF approval, driving price appreciation in these older assets.

Over 26 million different crypto tokens are listed on CoinMarketCap, more than double the number available at the beginning of 2025. Economist and trader Alex Kruger stated that token supply exceeds demand, with infinitely more tokens yet to come.

Kruger advised traders to adjust expectations regarding altseason, defined as a sustained period of rising altcoin prices. He argued that the changed market dynamic makes a traditional altseason unlikely during the current cycle.

Instead, market participants should anticipate brief bursts of altcoin price increases affecting only select tokens. These rallies may last several weeks at most rather than the extended altseason periods seen in previous cycles.

The #prediction emerges amid ongoing debate among market analysts about crypto market structure and dynamics. The discussion centers on whether traditional altseason patterns will materialize given the dramatically increased number of available tokens.