Bitcoin Diminishing Returns? Altcoins Emerge as Top Return Field in 2025 Amid Perpetual Contracts and Leverage Risks

COINOTAG News reported on November 3 that crypto influencer Cobie cautions that Bitcoin may not continue delivering diminishing returns, while suggesting that altcoins could become incrementally harder to trade due to shifting market dynamics.

Analysts highlight several mechanics behind this view: intensifying competition among buyers with fading conviction, and a predominance of perpetual contracts and leverage trading in activity; measures like market-cap overvaluation and dilution risk pressuring valuations; early fully diluted valuation (FDV) capture of optimism may detach from real-time price signals, while pre-market price discovery can inject volatility and insecurity.

Historically, 2017-era buyers piled into spot positions, expanding exposure with confidence during uptrends. By 2025, much of the demand flowed through perpetual contracts, with valuation checks bypassed and exits driven by losses or forced liquidations.

Nonetheless, altcoins could offer compelling opportunities for discerning traders where disciplined asset selection and patient positioning matter more than early entry in a liquid market.

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