Small Crypto Tokens Take a Big Hit: What's Going On?

The crypto world is facing a rough patch. Small crypto tokens, often called altcoins, are down to their lowest point in four years. This is a big deal because it shows that the idea of an "alt season, " where these smaller tokens shine, might be over. Let's talk numbers. Big US stock markets like the S&P 500 and Nasdaq-100 have been doing well. They've grown a lot over the past two years. But crypto? Not so much. The CoinDesk 80 Index, which tracks the next 80 crypto assets after the top 20, fell a lot in early 2025 and kept going down. The MarketVector Digital Assets 100 Small-Cap Index also hit a new low in late 2025. This means over $1 trillion was wiped out from the total crypto market value. This is not a small difference. While big US stocks were growing, many altcoins were losing value and being more unstable. So, why did this happen? Well, it seems that investing in smaller crypto assets didn't give any extra benefits. Instead, it just added more risk. The question now is whether investing in these smaller tokens is worth it or if it's better to stick with bigger names like Bitcoin and Ethereum. There are three main altcoin indices that people look at. The CoinDesk 80 Index, the MarketVector Digital Assets 100 Small-Cap Index, and Kaiko's Small-Cap Index. All three show the same story: small altcoins are not doing well. On the other hand, big US stock indices have been doing great. They've grown a lot over the past two years with only small drops. But altcoins? They've been losing value and being more unstable. So, what does this mean for investors? Well, it seems that investing in smaller altcoins didn't give any extra benefits. Instead, it just added more risk. The question now is whether investing in these smaller tokens is worth it or if it's better to stick with bigger names like Bitcoin and Ethereum.