Traditional altcoin cycles, which featured broad market rallies called “altseason,” are now a relic of the past as new crypto market dynamics set in, according to Andrei Grachev, Managing Partner of DWF Labs, a crypto market maker and investment firm.

Too many tokens competing for limited capital and mindshare, a smaller number of market participants, and crypto exchange-traded funds (ETFs) altering market dynamics by trapping liquidity are driving factors of the disruption, Grachev told Cointelegraph.

An institutional focus on large-cap digital assets like Bitcoin BTCUSD, Ether (ETH) and tokenized real-world assets (RWAs) is also diverting capital and attention away from altcoins, he said.

“The long tail of tokens will still exist,…