Crypto market maker Wintermute stated that institutional investors now dominate the over-the-counter (OTC) crypto market, with a record 72% share of all spot trading flows in the first half of 2026. This proportion reflects a continuing rise, up from 61% during the final half of 2025 and 59% at the start of the preceding year.
Institutional dominance narrows market winners
Wintermute reported that increased institutional activity has been focused on a narrower selection of digital assets, meaning future altcoin rallies may become more concentrated and selective. The firm highlighted that liquidity is increasingly channeled into tokens preferred by institutions, while trading volumes across less popular assets have continued to weaken.
A breakdown of unique tokens traded illustrates this trend. Between the first half of 2024 and the first half of 2026, the number of unique digital assets traded by institutional clients on Wintermute’s OTC desk increased by only 24%. In the same period, retail clients expanded their activity across tokens by 76%.
According to Wintermute’s findings, institutional investor engagement typically fades quickly after a token’s price and trading volume surge. Most institutional-driven activity subsides after about one day, while retail interest often remains stronger for nearly three days after a surge.
Wintermute noted that liquidity has begun to concentrate in assets favored by institutions, resulting in a weaker market for the “long tail” of smaller tokens. The firm observed that as institutional flow becomes more prominent, fast subsiding rallies may lead to fewer altcoin winners compared to prior cycles.
Data signals concentration around major altcoins
Independent market data has reinforced Wintermute’s findings. On June 20, CryptoQuant CEO Ki Young Ju observed that the longstanding trend of rotating profits from Bitcoin into smaller altcoins has nearly vanished. CryptoQuant analysis revealed that trading volumes in Bitcoin-denominated altcoin pairs are at some of their lowest points since 2021.
Currently, the ten largest non-stablecoin altcoins represent about 80.5% of the total market cap for altcoins excluding both Bitcoin and stablecoins. This level of concentration underlines the growing influence of large-cap assets in the digital asset space.
Kaiko, a major data provider, tracked a similar pattern. In July 2025, Kaiko reported that the ten largest altcoins accounted for 63% of total altcoin trading volume, rising from around 50% just a few months prior, as the activity among smaller tokens continued to decline.
Meanwhile, DWF Labs managing partner Andrei Grachev stated earlier this year that broad altcoin rallies were being replaced by more selective moves within specific sectors. On March 15, Grachev commented that the number of tokens competing for limited capital continues to increase. He added that institutional attention remains largely on Bitcoin, Ether, and tokenized real-world assets.
With the focus shifting toward quality and selectivity, platforms bridging traditional and crypto assets have become increasingly relevant. For instance, 1stepSwap enables users to directly access tokenized shares of major US companies and commodities like gold and silver through their wallets. The platform stands out for its ability to secure the best available prices, allowing portfolio diversification among the world’s largest stocks without intermediaries or cumbersome procedures.
Kaiko’s analysis pointed out that trading activity has become highly concentrated in the largest altcoins, underscoring the trend toward fewer winners in future market upswings as liquidity pools increasingly favor sector leaders.
