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While the total market capitalization entered its fourth consecutive week of decline and the market lost nearly $1 trillion in November, the data reveals a marked change in the way investors withdraw capital, with mid-cap and small-cap assets showing a surprising positive sign.
What is this reference and what does it mean in the current context? The following report provides a detailed explanation.
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The market sentiment index appeared to be in “extreme fear” for most of November. However, several positive signs remain as glimmers of hope for altcoins.
First, a report from Cryptoquant compares the market performance of Bitcoin, large cap coins, mid cap coins and small cap coins. It shows great resistance in the segment of assets with a lower market value.
According to the market comparison chart, Bitcoin saw the biggest decrease in November. Large-cap coins, which include the top 20 altcoins, also declined, but to a lesser extent. Medium and small coins depreciated only slightly and suffered less damage.
“Large-cap coins are struggling, but not as much as Bitcoin, while mid- and small-cap coins are showing real resilience,” said Darkvest analyst. As he said.
In fact, the chart shows that only the market capitalization of Bitcoin and the major coins are forming new all-time highs. While mid and low market capitalization assets have not returned to their peaks by the end of 2024. Psychologically, once altcoins decline significantly – typically losing 80-90% of their value – holders tend to consider their assets “already lost”. Then they have little incentive to sell out of panic.
This leads to the second notable factor: a discrepancy between the dominance of Bitcoin and that of other assets.
Bitcoin Dominance (BTC.D) measures Bitcoin’s share of the total market capitalization. While Other Asset Dominance (OTHERS.D) measures the share held by all altcoins except the top ten.
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The graph shows that in November, OTHERS.D rose from 6.6% to 7.4%. Meanwhile, BTC.D fell from 61% to 58.8%.
This divergence means that altcoin investors are no longer selling hysterically, even if they feel about losses. Rather, they hold their positions and wait for recovery.
Historically, when BTC.D declines and altcoin dominance increasesthe market often moves to Growing cycle for altcoins.
Binance data shows that 60% of current trading volume now comes from altcoins. This is the highest level since the beginning of 2025.
Analyst Maartunn believes that this data highlights where the current business activity is. Currently, activity is largely concentrated outside of the major cryptocurrencies. Altcoins have again become extremely popular trading vehicles on the Binance platform.
“Historically, an increase in altcoin trading volume has often coincided with an increase in market speculation,” said Maartunn. .
In conclusion, cryptocurrencies with medium and low market have attracted strong liquidity flows. They also show better price performance and higher market share ratios. These factors indicate that altcoin holders are highly anticipated Recovery from the lowest zone.
