Are Altcoins Still Just Venture Capital?

CoinShares warns that altcoins — now accounting for over 40% of crypto market capitalization (Sept 2025) — present significant opportunity but retain start-up–level risk. Their report likens altcoins to early-stage tech ventures, noting concentrated ownership, thin liquidity and frequent fraud (Blockspot catalogued 17,000+ ‘dead coins’ as of Apr 2026). Price volatility is extreme (moves of 30–50% over a few days are common), and returns are cycle-driven ("altseason") with themes like DeFi or AI rotating leadership. CoinShares recommends altcoin exposure be a small, venture-capital–style sleeve of a broader portfolio rather than a core position; it highlights the CoinShares Altcoins ETF (DIME) as a regulated access point. Market impact: altcoins can amplify risk-on/off flows and lead sector-specific rallies or crashes distinct from bitcoin.