Matrixport says weak retail inflow has stalled altcoin rally this cycle

The anticipated altcoin rally has failed to materialize over the past year, according to a report from crypto financial services firm Matrixport. The report noted that while previous cycles saw capital rotate from Bitcoin into altcoins, this mechanism has been significantly weaker this time around. The primary reason cited is a decline in participation from retail investors, who have historically been a key driver of altcoin demand. Matrixport also pointed to sell pressure from major projects as another key factor. Selling by early investors and ongoing token unlocks are adding further pressure to the market, structurally limiting any attempts at a rebound, the firm explained.