**Crypto Market Update: Altcoins Struggle Amidst Overcrowding**

The total market cap for fungible tokens hit over $2 trillion as of September 16, with altcoins (excluding Bitcoin and Ethereum) contributing $240 billion in the past year. Despite this growth, new tokens launched in 2024 have largely underperformed. The reason? Oversaturation.

- **Altcoin Explosion:** The number of altcoins has surged by 107% in a year, reaching over 3.5 million tokens. However, the crypto user base grew by only 33%, leading to diluted attention and fragmented liquidity.

- **Institutional Support:** Tokens with significant institutional backing, like SOL, XRP, and BNB, have fared better. Institutional investors bring more capital and stability, helping these tokens stand out.

- **Future Outlook:** Greater institutional participation could stabilize the market and improve trust. Currently, institutional investment in crypto remains low compared to traditional markets.

In summary, while the altcoin market has expanded, the influx of new tokens has made it harder for individual tokens to gain traction without institutional support.