End of the "Alt Season": Is the Altcoin Market Oversaturated and What Does This Mean?

Over the past few years, the cryptocurrency market has gone through many strong growth cycles, in which the "alt season" - the period when altcoins explode in value - was once considered a golden opportunity for investors. However, with the continuous explosion in the number of altcoins, many experts and investors are beginning to ask: Does the bull run of altcoins still exist? Through the following article, let's analyze the current situation and the reasons leading to the saturation of the altcoin market today.

1. The Development Journey of Altcoins Through Cycles 2017 - The Beginning of Alt Season In 2017, the cryptocurrency market witnessed a remarkable surge of Bitcoin and the simultaneous explosion of altcoins. At that time, the total number of existing altcoins was only about 30,000. This limitation in quantity created a "fascination" for altcoins, as each coin had the opportunity to attract investors' attention and achieve impressive growth during the bull run period. 2021 - The Boom of Altcoin Quantity Not only stopping at 2017, by 2021, the altcoin market has seen an unprecedented explosion. The total number of altcoins has increased from about 3 million to 30 million. This explosion reflects the attractiveness of the cryptocurrency market for new projects, while showing the increasingly fierce competition among coins. Currently - When the Number of Altcoins Reaches 100 Million Dong According to the latest data, there are currently a total of approximately 100 million altcoins on the market. This enormous number not only demonstrates the rapid development of the industry but also raises a big question: Is there still room for a real 'alt season' when the market is already saturated like this?
2. Reasons for the diminishing significance of the 'Alt Season' a. Too Many New Projects - Fierce Competition As the number of altcoins skyrockets, not all projects have true core values and innovation. Many new coins are born only for the purpose of attracting short-term investment, without creativity or practical application. This fierce competition dilutes the value of each altcoin, making it harder than ever to concentrate the single "hot spot" to create a bull run season. b. Investors Are Confused in the Old Thinking Process Another important factor is the mindset of investors. Many people are still stuck in the thinking of the 'altcoin bull run' season as seen in the past. Instead of innovating and looking for new market signs, they continue to follow old numbers and historical indicators. This prevents investors from recognizing warning signals of saturation and the risk of investing in low-quality projects. c. Lack of Innovation and Practical Application A major drawback of many altcoins today is the lack of application and innovation. With millions of projects coexisting in the market, not every project has a breakthrough idea or practical application. This shortage reduces the ability to create sustainable value, thereby making the 'alt season' - the period of explosive value concentration - difficult to occur.
3. New Direction: Seeking Real Value and Innovation a. Investing in High-Quality Projects In the context of a saturated market, it is important for investors to learn how to distinguish between 'fake money' and 'valuable money.' Instead of being caught up in the large quantity of altcoins, focus on researching, evaluating, and selecting projects with a strong technological foundation, reputable founding team, and truly innovative ideas. b. Update Information And Market Trend Analysis The cryptocurrency market is always volatile and constantly changing. Therefore, updating information and analyzing new trends is extremely necessary. Investors need to actively absorb new knowledge, thereby making informed decisions instead of relying on old thinking patterns. c. Encouraging Innovation and Practical Application Altcoin projects need to focus on creating practical solutions for current issues in society and the financial industry. Only then can new altcoins gain the trust of the community and create sustainable long-term value.
4. Conclusion With the explosion of the number of altcoins from 30,000 VND in 2017, 3 million to 30 million VND in 2021, to the current figure of 100 million VND, the market has gone through a saturation process to the point where the traditional concept of 'alt season' has lost its meaning. Investors need to be aware that instead of continuing to live in the past, they must learn to objectively evaluate the market, innovate their thinking, and focus on the core value of projects. Instead of being obsessed with following historical indicators, actively seek out and invest in innovative projects with practical applications and sustainable development potential. Only then, no matter how saturated the altcoin market is, can we create new breakthroughs and open up a new growth trajectory for the cryptocurrency industry. The article aims to help investors and those interested in the cryptocurrency market to be aware of the significant changes in the current altcoin space, thereby making smart and realistic investment decisions.