New data from Glassnode has revealed that the global altcoin market is undergoing one of its sharpest devaluations in history.

Meanwhile, Bitcoin (BTC) has remained relatively stable despite volatile price swings. This showcases a stark divergence between the largest cryptocurrency and the broader altcoin sector.

Altcoins Face Historic Devaluation 

Glassnode’s latest on-chain newsletter detailed the volatility in the Bitcoin market last week. Macroeconomic conditions, including President Trump’s proposed tariffs on Canada, Mexico, and China, were listed as the driving facts behind it. 

These geopolitical tensions created an uncertain environment for investors. In addition, the continued strength of the US dollar contributed to a constrained liquidity environment.

Despite these fluctuations, Bitcoin demonstrated relative stability, fluctuating between a low of $93,000 and a high of $102,000. This indicated a generally sideways market. 

Glassnode’s analysis attributed the stability to increased liquidity and larger capital flows, which offset the momentum of a growing asset.

“The growing presence of a more resilient and patient holders has contributed to the stability of BTC prices, even amidst a relatively unstable macro backdrop,” Glassnode noted.

In contrast to Bitcoin’s relative resilience, altcoins have faced significant challenges. By using Principal Component Analysis (PCA), Glassnode declared that most ERC-20 tokens were closely clustered, indicating a broad-based sell-off across the altcoin market.

This suggested that very few altcoins managed to avoid the volatility and move independently.

“The Altcoin sector took the heaviest relative losses during the downturn, with the global altcoin market cap experiencing one of its biggest devaluations on record,” the newsletter read.

The severity of this sell-off was evident in the global altcoin market capitalization, which saw a $234 billion decline over a 14-day period. Yet, Glassnode acknowledged that this decline was not as severe as previous crashes. These included the Great Miner Migration in May 2021 and the LUNA/UST and 3AC collapses in late 2022.

Is Altcoin Season Still a Possibility?

Meanwhile, a crypto analyst on X drew attention to a recurring trend in crypto cycles. The analyst highlighted that Bitcoin dominance peaks as it reaches new all-time highs, while altcoin dominance hits lows. This phase often creates a sense of desperation among altcoin investors, who feel late in the cycle. 

Nonetheless, based on past trends, the analyst revealed that Bitcoin’s dominance typically declines after its second big price jump to new record highs. This is followed by a rise in altcoin dominance. 

“I still expect Bitcoin dominance to drop and Altcoin dominance to increase,” the post read.

However, the analyst addressed that the current cycle is more intense due to more altcoins and fewer investors holding Bitcoin at higher prices. Thus, the money flow follows Bitcoin first, then major altcoins, and finally, mid- and low-cap altcoins.

Another analyst also pointed to a major signal for the altcoin season.

“Some altcoins are decoupling from Bitcoin for the first time since 2022—this is the first signal of the bull run!” he stated.

The analyst believes significant altcoin rallies are likely before Bitcoin is officially declared the reserve currency. He expects profits from Bitcoin to flow into altcoins, which could trigger an altcoin season.

Cardano price has emerged as the talk of the crypto town lately, sparking investor optimism despite the recent broader market downturn. Primarily against the backdrop of an ADA ETF buzz and strong on-chain technicals, the coin garners noteworthy bullishness across the crypto landscape. Now, with a top market analyst highlighting a potential $0.83 target looming for the crypto amid recent developments, market watchers speculate if the coin could defy the broader market trend and embark on a rising trajectory ahead.

Can Cardano Hit $0.83? Top Analyst Predicts Sparkling Optimism Amid ETF Filing

Renowned crypto market analyst Ali Martinez has recently posted on X, stating that “Cardano is breaking out, with a potential move toward $0.83 ahead,” given the rising momentum holds. This statement has sparked noteworthy market optimism surrounding the Cardano price’s future performance.

Crypto analyst Sebastian also provided a bullish outlook for Cardano, stating that it might be getting ready for another run. He predicted that the crypto could set a higher high if it breaks above $0.80 and that the next target will be $0.90 after that.

Primarily, as the cryptocurrency sector sees Grayscale forging ahead with its ADA ETF filing, the analyst’s prediction has gained significant traction. Further, CoinGape reported that the asset management giant filed for an ETF with NYSE, keeping up pace with the recent market trends surrounding crypto-backed exchange-traded products.

Can ADA Price Defy Market Downturn?

At the time of reporting, ADA price witnessed a decline of over 1% and is currently trading at $0.7897. The crypto’s 24-hour low and high were $0.7561 and $0.8144, respectively. However, the weekly chart for the Cardano price showed a 2% upswing. This price jump, per the broader time frame chart, already defies the current crypto market slump, especially after the US CPI inflation release.

While Bitcoin and altcoins have lost substantially in recent days, the current ETF-related development appears to have conversely uplifted the coin’s market sentiment.

Strong On-Chain Support Reflects Potential For Gains Ahead

On the other hand, Santiment data underscored growing market support for the asset, adding optimism over a potential Cardano price rally ahead. Data revealed that Cardano’s market cap has recovered by 11% in a day, whereas most cryptocurrencies have retraced.

Moreover, wallets holding at least 1 million tokens have continued accumulating from November 2023 to Feb 2025. These accumulations account for 1.41 billion tokens, worth 2.35% of the entire supply. Overall, this data has underscored sustained and rising market confidence in Cardano, paving a bullish outlook for future movements, further supported by the recent ADA ETF filing.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.