Institutional Investors Flock to Top Tokens, Limited Scope for Altcoins

Wintermute, a leading crypto market maker, has expressed pessimism about the upcoming altcoin season. According to the company's latest assessment, institutional investor behavior is shifting, and capital is becoming increasingly concentrated in a smaller number of tokens.

In the first half of 2026, institutional clients accounted for 72% of Wintermute's over-the-counter (OTC) spot trading volume, the highest level recorded in the company's history. This suggests that institutional investors are acting more selectively and focusing on specific tokens.

Wintermute believes this trend indicates a change from the classic 'altcoin season,' where hundreds of altcoins experience simultaneous price increases. Instead, only projects with strong use cases, high liquidity, and institutional interest will stand out in the new cycle.

Data from CryptoQuant shows that trading volume for altcoin pairs traded on Bitcoin is approaching its lowest levels since 2021. The top 10 altcoins by market capitalization account for approximately 80.5% of the total altcoin market capitalization when Bitcoin and stablecoins are excluded.