Altcoin Market Cap Rebounds by $90 Billion, Analysts Warn of Liquidity Dilemma

BroadChain has learned that as of 15:30 on April 21, according to Bitcoinist, since the cycle peak in October 2025, the total market capitalization of altcoins (excluding Bitcoin, Ethereum, and stablecoins) has lost approximately $460 billion from its peak, a decline of 38%. However, since February, this market cap has rebounded by about $90 billion. Technical indicators show signs of recovery: the proportion of altcoins trading below the 50-week moving average on Binance has decreased from 89% in early February to the current 67%. Yet, the recovery faces structural challenges: liquidity remains constrained, while the number of assets competing for funds has reached approximately 49 million (with over 22 million on the Solana chain alone). This means that after the $90 billion incremental funds are spread across a vast number of assets, the benefit to individual tokens is minimal. From a macro-structural perspective, the total crypto market capitalization excluding the top ten assets is attempting to stabilize around $180 billion, but it still operates below the continuously declining 200-week moving average. A breakthrough above the $220-240 billion resistance zone is needed to confirm a trend reversal. Trading volume has recently declined after surging during the sell-off phase, indicating that the rebound lacks sufficient participation and conviction.