Investor Interest in Altcoins Wanes as Capital Shifts to Regulated, Liquid Assets

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Altcoins to watch are losing traction as capital flows toward regulated, liquid assets, per BlockTempo. The altcoin index is down nearly 40% this year, while the S&P 500 and Nasdaq 100 rose 47% and 49% over two years. CoinDesk 80 dropped 46.4% in Q1 2025 and is 38% lower year-to-date. Altcoin volume has rebounded to 2021 levels, but 64% is now in the top 10, with Solana and XRP benefiting from clearer regulation. Institutional money is pouring into Bitcoin and Ethereum via spot ETFs, pushing smaller altcoins aside. Fear and greed index readings suggest caution is growing among retail investors.
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