Why altseason 2021 will be difficult to repeat in this cycle
IOSG believes that a broad-based altcoin season like the one seen in 2021 is unlikely to be repeated in the current market cycle. The main reasons include an excessive supply of tokens, fragmented liquidity, and user attention being spread thin across too many projects. In addition, institutional capital continues to concentrate primarily on Bitcoin and Ethereum, leaving most altcoins without sufficient buying pressure. Another key factor is the lack of breakthrough applications capable of attracting large numbers of users, as seen in previous cycles.
As a result, altcoin performance in this cycle is expected to be slower, highly selective, and more dependent on fundamentals rather than speculation. Capital flows are likely to favor DeFi blue-chip projects and those with clear revenue models, real-world use cases, and sustainable growth, while mid-cap tokens may face significantly greater challenges.
