Altcoins Persist Despite Market Fear: 3 Positive Signals Emerge

In November, the total market cap has seen a decline for four consecutive weeks, losing nearly $1 trillion. However, data indicates a noteworthy distinction in how investors are withdrawing capital, with mid- and low-cap assets showing unexpectedly positive signals.

Key Takeaways

The market cap has dropped significantly, losing nearly $1 trillion in November.
Lower-cap altcoins show resilience compared to Bitcoin and large-cap assets.
There’s a positive divergence between Bitcoin Dominance and Altcoin Dominance, signaling reduced panic selling among altcoin investors.
The majority of current trading volume on Binance comes from altcoins, suggesting increased trader interest and speculation in this segment.

What do these signals signify in the current market landscape? This report breaks it down further.

Positive Signals for Altcoins Amid Market Pessimism

The market sentiment index has remained in the “extreme fear” zone for a majority of November. Nevertheless, several optimistic signals have emerged, providing a glimmer of hope for altcoins.

Firstly, a report from CryptoQuant highlights a comparison in market-cap performance among Bitcoin, large-cap assets, and mid- and small-cap altcoins, revealing a remarkable resilience among lower-cap assets.

Bitcoin vs. Altcoin Market Cap Analysis

According to the market-cap comparison chart, Bitcoin has endured the steepest decline this November. Large caps, which consist of the top 20 altcoins, also faced downturns but to a lesser degree. Mid- and small-cap altcoins experienced only minor declines and were impacted less severely.

“Large caps are struggling, but not as much as BTC, while mid and small caps are exhibiting real resilience,” noted analyst Darkfost.

The chart illustrates that only the market caps of Bitcoin and large caps reached new all-time highs, while mid- and low-cap assets have yet to rebound to their late-2024 peaks. From a psychological standpoint, when altcoins lose substantial value—often 80-90%—holders frequently view their assets as “lost” and lack the urgency to panic sell.

Divergence Between Bitcoin Dominance and Altcoin Dominance

The second significant signal is the divergence between Bitcoin Dominance (BTC.D) and OTHERS Dominance (OTHERS.D).

Bitcoin Dominance measures Bitcoin's share of the total market cap.
OTHERS Dominance accounts for the market share held by altcoins, excluding the top 10.

The chart reveals that in November, OTHERS Dominance increased from 6.6% to 7.4%, while Bitcoin Dominance fell from 61% to 58.8%.

This divergence suggests that altcoin investors are not panicking even while facing losses; instead, they seem to be holding onto their investments and awaiting potential recovery. Historically, a decrease in Bitcoin Dominance is often associated with an emerging altcoin bull cycle.

Trading Volume Shifts Towards Altcoins

In addition, data from Binance indicates that 60% of the current trading volume stems from altcoins, marking the highest level since early 2025.

“This data underscores where active trading is occurring; the focus is heavily on altcoins rather than major cryptocurrencies," said analyst Maartunn.

He emphasized that an increased proportion of altcoin trading volume historically leads to greater speculation within the market.

Conclusion

In summary, mid- and low-cap altcoins are observing significant liquidity inflows, displaying improved price performance and increased market share ratios. These trends indicate that altcoin holders harbor strong expectations for a recovery as the market slowly stabilizes.