An analyst on X is sounding the alarm, claiming the 2025 crypto cycle seems harsher than expected, with even major altcoins failing to make any real gains.
Route 2 FI says that the top digital assets like Solana (SOL), Ethereum (ETH), and Bitcoin (BTC) are trading close to their December 2024 levels, and the mood in the market has hit new lows as many people are frustrated and wary because it’s becoming hard to find profitable trades.
Structural Weaknesses Across Altcoins
In a lengthy post on X, the market observer noted that the top 50 altcoins are now trading below post-FTX 2022 levels, reflecting how quickly investor optimism has faded.
He said factors like an oversaturated market, tokenomics that don’t keep value, and high initial valuations have made it harder for even the best projects to enjoy liquidity.
His post paints a picture of a changing market where traditional patterns don’t always lead to profits. According to him, a CEX listing no longer causes a pump, and venture-backed tokens often flood the market after big unlocks, which makes selling pressure even stronger.
The analyst also highlighted how this environment affected people. For instance, the recent sell-off in early October left more than a million active traders with empty portfolios, probably making them less likely to put any new money into crypto in the near future.
“After Black Friday around half of crypto traders lost everything, and many of them might not come back to trading again.”
During the event, BTC dropped sharply from over $122,000 to about $101,000, before rousing itself back up to $116,000. Since then, it has faltered severally, going below $104,000 at one point as geopolitical tensions between the United States and China played out.
Ethereum too dipped below $3,700, but has since gotten back to $4,000, even though it’s still down 18% from its all-time highs, showing that it is still fairly volatile. Meanwhile, the likes of Cardano (ADA), Hyperliquid (HYPE), SUI and BNB have lost between 7% and 17% weekly, underscoring the broad weakness across altcoins.
Route 2 FI’s assessment captures a broader truth: the cycle’s difficulties are structural, not temporary.
“Too many tokens, tech we don’t need, projects that haven’t found PMF, tokenomics that don’t work,” he wrote, highlighting the mismatch between market supply and genuine demand.
He also said that the flow of new tokens with high, fully diluted valuations, is taking money away from existing assets, making the market more competitive and less forgiving.
Adaptability as a Path Forward
Traders may be unhappy with the current situation, but Route 2 FI gave them a useful lesson: to survive, they need to specialize. Those who focus on building unique skills are more likely to find opportunities in a crowded market, whether they do so through trading, content creation, or networking.
He says that being visible on social media sites like X can help traders find mentors, partners, and possible career paths, even when the market isn’t moving.