Approximately 38% of altcoins are nearing historic lows. The situation in the sector is worse than after the collapse of the FTX exchange, according to analyst Darkfost.

38% of Altcoins Near ATL, Worse Than the Post-FTX Period

“This metric shows how much altcoins are still under pressure. In fact, this represents the largest regression of altcoins observed during this cycle.” – By @Darkfost_Coc pic.twitter.com/chtaz1mHdZ

— CryptoQuant.com (@cryptoquant_com) March 3, 2026

He noted that investors are shying away from risks. Liquidity is flowing from the crypto market into stocks and commodities. Alternative coins are bearing the brunt of this shift and losing market share.

The price drop is accompanied by a decline in interest in these assets. According to analytics platform Santiment, mentions of altcoins on social media have hit a two-year low. Global Google search volume has fallen to an annual record low of 4 out of 100 possible points.

Source: Google Trends.

Axis co-founder Jimmy Xue explained the situation as a "liquidity exodus." He stated that due to a capital shortage, even minor shifts in market sentiment trigger mass sell-offs.

Xue added that altcoins lack the institutional support and the "digital gold" status that provide Bitcoin with its resilience.

Despite the capital outflow, Darkfost remains optimistic. The analyst emphasized that the best investment opportunities often arise during periods of sharp market downturns.

Recall that in February, Santiment specialists identified the main condition for a significant crypto market rally as its independence from TradFi dynamics.