Altcoins have been under heavy pressure over the past year. Delphi Digital said that among the altcoins it tracks, only about 6% posted gains, while most of the market lost roughly 70% of its value from prior levels.
The damage was not limited to smaller tokens. According to the source material, Bitcoin and Ethereum both fell by more than 20%, while Solana dropped by over 50%. As losses spread across major and minor assets alike, capital moved toward lower-risk holdings, with stocks and precious metals drawing attention.
Layer 1 tokens, memecoins, and modular blockchain projects took the heaviest hit
Layer 1 tokens were among the weakest segments in the downturn. The report said nearly all Layer 1 blockchain tokens declined sharply, with losses ranging from 60% to 80%. BNB was the rare exception, posting a small gain.
Newly launched modular blockchain tokens and memecoins fell even harder, with some names down more than 90%. DeFi also saw steep declines. Ethereum-based DeFi dropped by around 50%, while Solana DeFi fell by slightly more. The selling was strongest in segments tied more closely to speculative positioning.
AI, DePIN, and platform tokens saw deep narrative-driven drawdowns
Narrative-led sectors posted the largest losses. The article highlighted AI, DePIN, and platform tokens as some of the worst performers, with declines of more than three-quarters and average drawdowns in the 80% to 90% range. In periods of market rotation, sectors priced mainly on sentiment and future expectations tend to swing harder, and that pattern showed up clearly here.
Gold and silver also fell fast, while Bitcoin held up better
Traditional safe-haven assets did not escape volatility. Santiment reported that gold fell by more than 12.5% in two days, while silver dropped by about 25%. Bitcoin, by comparison, was down just 4.3% over the same period and remained above the $80,000 midpoint.
The report also said the S&P 500 showed relatively smoother price action, suggesting the stock market absorbed shocks more evenly. Based on these moves, capital was not simply rotating into classic safe havens. It was being redistributed across equities, Bitcoin, and metals, while altcoins absorbed the sharpest losses.