Dino Cryptos: Why Older Altcoins Could Dominate Institutional Funds in 2025

The cryptocurrency market is evolving rapidly. Consequently, the dynamics of altcoin investment are shifting. Investors are increasingly looking for stability and established assets. This trend signals a potential redirection of significant capital. The upcoming altcoin season might look very different from previous cycles. Indeed, institutional players are now entering the space with considerable force. They are reshaping traditional market expectations. This shift could significantly impact which altcoins see the most growth.

The Rise of ‘Dino Cryptos’ and Institutional Altcoin Funds

Older, more established altcoins, often termed ‘Dino cryptos,’ are attracting substantial interest. Maen Ftouni, CEO of CoinQuant, believes these assets will absorb much of the capital. CoinQuant develops algorithmic trading tools. Ftouni shared his insights at the Global Blockchain Congress 2025 in Dubai, UAE. He explained that liquidity will concentrate in specific areas. “Dinosaurs being one of them, of course,” he stated. This perspective suggests a departure from broad market rallies. Instead, select, time-tested cryptocurrencies could benefit most.

Ftouni attributes recent rallies in older cryptocurrencies to this phenomenon. For instance, XRP (XRP) and Cardano (ADA) saw notable increases in 2024. These gains reflect growing institutional confidence. Furthermore, traditional finance participants are driving this trend. They seek assets with established track records. This preference naturally favors older altcoins. These assets offer a perceived sense of security. They also present a pathway for larger capital deployment. Therefore, understanding this shift is crucial for investors.

The ETF Catalyst: Fueling Crypto ETFs and Established Assets

The flow of funds largely originates from traditional finance. Crypto ETFs play a pivotal role in this. These investment vehicles provide regulated access to digital assets. Consequently, they attract institutional investors. Ftouni noted, “Those people are probably looking at these major coins.” He added, “all the coins established that have the potential of getting an ETF.” This regulatory pathway creates a strong incentive. It channels institutional altcoin funds towards assets with ETF potential. This explains the observed rise in these ‘dinosaur’ coins. Institutions prioritize assets that align with their compliance frameworks. ETFs offer exactly that alignment. They simplify investment for large financial entities. This makes them a key driver of current market trends.

A New Era for Altcoin Season: Challenging Traditional Views

Market analysts are currently debating the structure of the crypto market. Specifically, they question how this will impact the next altcoin season. A sustained rally in altcoin prices has historically characterized altseason. However, some experts predict a different outcome this cycle. The landscape has changed significantly. This shift challenges previous assumptions about market dynamics. Investors must therefore adjust their expectations. The traditional, broad-based altcoin boom might not repeat itself. Instead, more selective growth could define the next market phase.

The sheer number of crypto tokens presents a major challenge. CoinMarketCap lists over 26 million different crypto tokens. This figure more than doubled since early 2025. Economist and trader Alex Kruger highlighted this issue. “Too many tokens, infinitely more to come,” Kruger remarked. He further stated, “the supply of tokens is greater than demand.” This oversupply fundamentally alters market dynamics. It disperses liquidity across an ever-growing number of assets. This makes a widespread rally less probable. Consequently, investors need to be more discerning.

Liquidity Concentration and the Supply-Demand Imbalance

Kruger advised traders to adjust their expectations. He believes an ‘altseason’ with sustained, widespread asset price increases is unlikely. This is due to the changed market dynamic. Instead, traders should anticipate short bursts of rising prices. These bursts will likely affect only select tokens. Moreover, they may last only for several weeks at a time. This suggests a highly fragmented market. Liquidity will flow into specific, high-conviction assets. This contrasts sharply with previous cycles. Previously, a rising tide lifted most altcoins. Now, a more targeted approach is essential for successful altcoin investment.

The increasing supply of tokens dilutes market capital. This makes it harder for smaller projects to gain traction. Furthermore, institutional funds often prefer larger market cap assets. These assets offer better liquidity for entry and exit. This preference reinforces the ‘Dino cryptos’ thesis. Smaller, newer tokens struggle to compete for attention and capital. The demand simply cannot keep pace with the exponential supply growth. Therefore, careful selection becomes paramount for investors.

Navigating the Future of Altcoin Investment

The current market cycle presents a unique challenge for altcoin investment. The influx of institutional capital, primarily via crypto ETFs, is reshaping the landscape. This trend favors established assets. These ‘Dino cryptos’ offer stability and regulatory clarity. However, the proliferation of new tokens creates a complex environment. It fragments liquidity and challenges traditional altseason expectations. Investors must therefore remain agile and informed. Understanding these new dynamics is key to navigating the market successfully.

Both Maen Ftouni and Alex Kruger offer valuable perspectives. Ftouni highlights the gravitational pull of institutions towards older, reliable assets. Kruger, conversely, points to the overwhelming supply of new tokens. He cautions against expecting a broad altseason. Together, their insights paint a picture of a more selective market. Future gains may concentrate in fewer, more established altcoins. This necessitates a strategic approach. Due diligence and a focus on fundamental value become more important than ever. Consequently, investors should prioritize quality over quantity.

Conclusion: Institutional Influence Reshaping the Market

The cryptocurrency market stands at a pivotal juncture. Institutional altcoin funds are increasingly targeting ‘Dino cryptos.’ This trend is largely driven by the emergence of crypto ETFs. It signifies a maturation of the digital asset space. While a traditional, widespread altcoin season may be less likely, opportunities remain. These opportunities are concentrated in assets favored by institutional capital. Investors should focus on established altcoins with strong fundamentals. This strategic shift reflects the growing influence of traditional finance. It underscores the importance of adapting investment strategies. The future of altcoins will undoubtedly be shaped by these powerful forces.