Ten years ago, the dynamics of the crypto market were relatively simple. When Bitcoin rose sharply, hundreds of altcoins followed suit. When it fell, everything fell. Investors held portfolios full of “diverse” tokens, but during major declines, this diversification proved to be more of an accounting illusion.
The year 2026 has not brought any fundamental change. There are thousands of altcoins today, cryptocurrencies are often presented as a mature asset class comparable to stocks, and individual projects strive to emphasize their uniqueness. However, the reality is harsh—the market remains virtually dependent on Bitcoin.
Price developments since the beginning of the year confirm this. Bitcoin weakened by about 14% to approximately $75,000, its lowest level since April last year. Most other tokens fell similarly, often even more significantly.
What is particularly worrying is that, along with Bitcoin, tokens from projects that generate real income are also falling.
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Even income does not guarantee resilience
Data from the DefiLlama platform shows that the most profitable blockchain projects of the last 30 days include decentralized exchanges and credit protocols such as Hyperliquid, Pump, Aave, Jupiter, and Aerodrome, as well as some layer-1 networks, including Tron. Nevertheless, their tokens are significantly weakening in most cases.
For example, the AAVE token associated with one of the largest lending protocols on Ethereum has lost about 26%. The exception is Hyperliquid, whose HYPE token is about 20% higher this year, although it has fallen from a high of $34.8 to around $30. It was helped mainly by strong activity in the area of tokenized gold and silver.
According to some observers, this is due to a widespread narrative that labels large cryptocurrencies such as Bitcoin, Ether, and Solana as “safe havens,” while revenue-generating projects are perceived as risky.
“People in this industry will continue to claim that BTC, ETH, and SOL are safe havens. Yet the only projects that are actually making money during downturns are HYPE, PUMP, AAVE, AERO, and other DeFi protocols,” Jeff Dorman, chief investment officer at Arca, told Coindesk.
According to him, the crypto industry should take inspiration from traditional markets and start systematically building consensus around truly resilient sectors, similar to what Wall Street does with defensive stocks or investment-grade bonds.
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Stablecoins as a brake on diversification
Analysts see another problem in stablecoins—digital assets pegged to the US dollar, for example. Today, they function as the equivalent of cash.
“Unlike stock markets, where capital usually remains invested, stablecoins allow investors to quickly switch from risky positions to neutral mode,” says Markus Thielen, founder of 10x Research. According to him, this reinforces the dominance of Bitcoin, which has long accounted for more than half of the total market capitalization of cryptocurrencies.
Thielen also points out that among the major tokens, BNB and TRX, for example, have historically behaved more defensively. TRX is down only about 1% this year, while bitcoin has fallen more significantly.
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Outlook: no decoupling from bitcoin
Institutional interest in bitcoin has grown significantly since the launch of spot ETFs in the United States two years ago. Since then, its share of the entire crypto market has remained above 50%. According to experts, nothing significant will change in the foreseeable future.
“Capital will continue to concentrate in Bitcoin. Moreover, the current decline will help eliminate zombie projects and long-term unprofitable businesses,” says Jimmy Yang, co-founder of Orbit Markets.
For investors, this means one thing: true diversification in cryptocurrencies remains more of a wish than a reality in 2026. And until the market emerges from the shadow of Bitcoin, even the most promising projects will dance to its tune.
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