Delphi Digital reports only 6% of altcoins gained, while average losses reached 70%, signaling fading altcoin demand.
Altcoins have endured a difficult year as broad market weakness erased most sector gains, according to Delphi Digital. Only about 6% of tracked altcoins posted positive returns in the last year. As a result, average declines were close to 70%, which reflects strong risk aversion.
Altcoin Losses Deepen as Capital Shifts Away
Delphi Digital stated that most altcoins went through a bad period after having a strong start earlier this year, 2025. A sudden crash in the market turned the tide in most sectors. As such, losses accelerated more quickly than many investors thought possible.
According to CoinGecko, Ethereum has dropped some 27% over the past year, indicating broader weakness. Solana fell about 55% in the same time, indicating heavy selling pressure. XRP also dived some 46% reinforcing the bearish trend.
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Despite massive losses, some assets proved to be resilient. BNB also gained around 14% during the year 2025 with steady demand in the ecosystem. TRX also increased almost 13% in the last year, against the general market conditions.
Delphi Digital stressed that the sell off had disproportionately hit altcoins compared to Bitcoin. While Bitcoin was volatile, loses were more contained. Therefore, relative performance was on the side of Bitcoin during the downturn.
Analysts attribute the divergence to capital rotating back into Bitcoin. Investors took a defensive stance with the uncertainty growing in global markets. As a result, the higher risk altcoins suffered from sharper drawdowns.
Liquidity conditions were also an important factor in the decline. Thinning liquidity increased price movements on smaller tokens. Consequently, volatility was on the rise and downside was accelerating.
The leverage collapse further added to selling pressure. As leveraged positions were being unwound, forced liquidations affected altcoins more severely. This dynamism reinforced steep losses across the sector.
Market Structure Signals Prolonged Altcoin Weakness
Delphi Digital listed the present environment as a chance-off market position. Capital flows are more and more in favor of stocks and precious metals, not altcoins. Therefore, the hype for speculative crypto assets has quickly died out.
Analysts note that declining leverage makes recovery potential short-term. Without the aggressive risk-taking, rebounds are limited. As a result, altcoins can have a hard time getting its momentum back.
Historical context reveals similar patterns in past downturns. For example, during a previous crypto winter, Solana experienced a peak-to-trough decline of 94%. However, recovery only came after the liquidity conditions improved.
The current market structure implies patience will be required. Sideways trading and selective strength may be the order of coming months. Broad-based altcoin rallies do not look likely without new capital inflows.
Bitcoin’s relative stability is still drawing defensive capital. As investors want lower volatility, altcoins are still under pressure. This shift helps to reinforce Bitcoin dominance during uncertain times.
Delphi Digital addressed the point that average altcoin losses are indicative of systemic as opposed to isolated weakness. Most sectors fell together as sentiment soured. Therefore, recovery is dependent on improvements in macro and liquidity.
Market participants are taking a fresh look at portfolio risk exposure. Many traders decreased the allocation of altcoins for safer assets. This behavior further helps reduce upside potential.
The rough year highlights structural weaknesses in the altcoin market. Being highly volatile and leveraged enable a downside to be amplified in stress times. As a result, losses are often greater than what is experienced with Bitcoin.
Looking ahead, sustained recovery will likely take renewed liquidity and risk appetite. Until then, altcoins may lag wider markets. The scale of the ongoing adjustment is reinforced by the data from Delphi Digital
Source: https://www.livebitcoinnews.com/altcoins-face-difficult-year-as-94-post-losses-delphi-digital-says/
