Altcoin Market Faces Over $1 Trillion Loss as Capital Shifts to Stablecoins

In November, the altcoin market witnessed a staggering loss of over $1 trillion, with capital flowing into stablecoins. Analysts suggest that this could indicate a late-stage bear market for altcoins before the next growth phase.

Key Takeaways

Altcoins lost over $1 trillion in value in November, with significant capital moving into stablecoins.
Analysts view the current market phase as a potential late-stage bear market for altcoins, rather than the end of the overall bull market.
Historical cycles suggest that this downturn may precede a new phase of altcoin growth.
While many altcoins dropped dramatically, some, including Bitcoin and Ethereum, have shown signs of recovery.
Several indicators hint at a possible altcoin rally, which may take longer to materialize.

Altcoin market loses over $1T as capital rotates to stablecoins - 1

November proved to be a challenging month for altcoins as more than $1 trillion exited the cryptocurrency markets, wiping out most of the gains made earlier in the year. Market analysts are closely observing TOTAL3, which tracks the total market capitalization of cryptocurrencies excluding Bitcoin and stablecoins, for signs of capital movement across different crypto sectors.

Altcoins Face Major Losses as Capital Rotates

In November, the altcoin market experienced substantial losses, with over $1 trillion moving out of cryptocurrency markets, as outlined by market data. This exodus has significantly curtailed the gains that many cryptocurrencies had enjoyed earlier in the year.

Analysts are particularly focused on TOTAL3, a metric indicating the total market cap of cryptocurrencies excluding Bitcoin and stablecoins, to identify patterns of capital rotation between various sectors in the cryptocurrency landscape.

Analysts Expect Bearish Trends

According to an analyst known as “Stockmoney Lizards,” capital is currently being redirected to stablecoins. This movement appears to follow a trend where declines in Bitcoin lead to an influx into stablecoins, which is often followed by a return to altcoins. The analyst describes this period as a time of waiting.

"Money is currently rotating from BTC into Stables. At these levels, I have a good idea of where it will rotate next."
— Stockmoney Lizards (@StockmoneyL) November 26, 2025

Michaël van de Poppe, the founder of MN Fund, posits that we are witnessing the conclusion of a bear market for altcoins as opposed to the end of a broader bull market. He refers to historical cycles, illustrating periods in which altcoins previously surged. Van de Poppe notes that the current market cycle is distinctly different from the usual four-year Web3 cycle.

"This is not the end of the bull market; it’s the end of the bear market for #Altcoins. I believe these opportunities will only arise once in a lifetime."
— Michaël van de Poppe (@CryptoMichNL) November 26, 2025

Conditions Favoring Future Altcoin Growth

Analyst Sykodelic delved into TOTAL3 charts and drew comparisons to previous market cycles, stating that the current situation resembles conditions that led to previous altcoin expansions.

"All the data points to it being time for altcoins. In a phase where most have almost given up on them entirely."
— Sykodelic 🔪 (@Sykodelic_) November 20, 2025

While many altcoins faced declines of 50% or more throughout November, some have shown slight recoveries. Bitcoin and Ethereum reported some gains, and tokens like Binance’s BNB and Hyperliquid experienced notable increases. Although total market capitalization has risen, it remains lower than levels seen in October.

Analyst Alex Wacy commented that various indicators suggest a possible major altcoin rally might be on the horizon, although he cautioned that if present trends persist, such a rally may not fully develop until next year.

"Every week, more indicators are pointing to a MASSIVE ALTS RALLY. If it materializes, the biggest altseason could occur. But at this rate, we might not see it until 2026."
— AlΞx Wacy 🌐 (@wacy_time1) November 26, 2025