Gate News reports that on March 6, Matrixport released a market chart indicating that the performance of altcoins over the past year has not met expectations. In previous cycles, Bitcoin’s rise often drove capital outflows and transmitted to the altcoin sector, but this mechanism has significantly weakened in the current cycle.
Matrixport analysis states that the main reasons include: First, retail investors, as an important driving force for altcoin demand, have remained relatively low in participation during this cycle; second, many crypto projects lack new narratives capable of driving the market or solutions with practical application value; third, the market faces ongoing selling pressure from early investors, with token unlocks and liquidity releases continuously adding new sell orders, hindering market rebounds from the supply side.
As a result, the overall altcoin market remains under pressure, and investor sentiment is generally discouraged. Matrixport notes that some assets still show localized strength, and such opportunities can be identified through market structure signals.
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