Rallies for smaller cryptocurrencies lasted just 20 days on average in 2025

The wild ride that lesser cryptocurrencies previously provided to investors has dramatically shortened. These digital tokens are now experiencing price spikes that fade at record speed, indicating a significant shift in where individuals are investing their speculative funds.

In 2025, rallies for these lesser-known crypto assets would generally endure only 20 days, according to market maker Wintermute’s study of over-the-counter cryptocurrency trading. That’s a sharp drop from the 40 to 60 days these price runs would typically continue in earlier years.

Billions in market exposure disappear

The change goes beyond simple loss of excitement. Retail investors appear to be redirecting their gambling money away from the wide array of smaller digital coins that once thrived on viral buzz and trading momentum. Instead, they’re looking at other high-risk opportunities like meme stocks and prediction markets.

The numbers tell a stark story. Since October, the amount of open interest in futures contracts for these alternative coins has plunged 55 percent. That translates to more than $40 billion in market exposure vanishing. Meanwhile, investors are turning to bigger, more established digital currencies like Bitcoin and Ether when they want to make bets tied to broader economic trends, explained Jake Ostrovskis, who leads OTC trading at Wintermute.

“The market was no longer driven by those idiosyncratic narrative themes and it was more macro-based for a while,” Ostrovskis said. “We were having a lot of conversations with a lot of traditional financial counterparties who had noticed that as well.”

Economic forces have recently taken the driver’s seat for Bitcoin pricing. President Donald Trump’s tariff policies and changing predictions about interest-rate cuts have triggered some of the most dramatic swings in crypto markets. Last year saw two of the biggest sell-offs following tariff announcements in April and October. Meanwhile, Bitcoin’s climb to a record high in October was partly fueled by concerns about currency losing value.

At the same time, tokens associated with high-profile people such as Trump and Argentinian President Javier Milei made news but failed to keep investor interest for more than a few days. Brief instances of activity include last year’s rivalry between memecoin sites Pump.fun and LetsBonk.Fun caused momentary turbulence but did not result in a sustainable recovery.

“By most measures, things remain in a bearish, choppy market,” said Cosmo Jiang, general partner at Pantera Capital Management. “Bitcoin needs to lead for it to be a really healthy rebound.”

CoinMarketCap’s Altcoin Season Index measures the performance of cryptocurrencies that are not among the top ten in terms of market value. According to the statistics, most smaller tokens performed worse than larger tokens during the last 90 days.

October hit holders of these alternative coins particularly hard. A single day of market selling erased $19 billion in value from digital assets, and the market hasn’t shown any significant recovery since then.

Speculation money flows to new ventures

Jasper De Maere, desk strategist at Wintermute, explained that these smaller coins are stuck with stagnant liquidity as money flows toward different speculative opportunities. Without major cash coming in to support the growing number of smaller tokens being created, the market for these alternative coins has essentially stalled.

“In 2021, crypto was pretty much the avenue for speculation,” De Maere said. “Today we see the equity market taking a lot of that in the shape of space, quantum, robotics and AI; all these narratives soaking up retail investments.”

Competition for retail investor dollars has gotten fiercer with the growth of prediction markets. Platforms like Polymarket and Kalshi have secured billions in funding from major backers, including Intercontinental Exchange Inc., which owns the New York Stock Exchange, and a16z. These platforms have become so popular that they’ve drawn new competitors into the space. Both Robinhood Markets Inc. and CME Group Inc. have rolled out their own products that let everyday investors place bets on various event outcomes.

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