Altcoins Set for Weak Returns in 2025 as Cryptocurrency Market Cap Declines

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Dec 23 2025

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Source: SeekingAlpha

Current Market Performance: Major altcoins are experiencing significant year-to-date losses, with the total crypto market cap dropping from $3.32T to $2.97T, reflecting a 10% decline. Bitcoin (BTC) is down approximately 7% and Ethereum (ETH) is down about 12% as investor demand weakens.
Altcoin Variability: Among the largest altcoins, performance varies widely, with Monero (XMR) gaining 126% while others like Dogecoin (DOGE) and Cardano (ADA) are down 60% and 61%, respectively. This disparity highlights the differing strengths and weaknesses within the altcoin market.
Future Outlook: Analysts suggest that 2025 may serve as a "necessary reset" for altcoins, with a focus on projects that can demonstrate strong fundamentals. There is speculation that Bitcoin's performance may improve in 2026 due to increased regulatory clarity and digital asset adoption.
Market Dynamics: Gracy Chen from Bitget notes that Bitcoin has become the "anchor asset" for the market, forcing altcoins to prove their value independently. The upcoming year may not see a repeat of the speculative altseason experienced in 2020/2021, as the market shifts towards more selective investment strategies.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.