The altcoin market delivered a mixed week from February 13–20, with pockets of sharp outperformance masking broader weakness across several sectors. Community-driven tokens and DeFi protocols led the charge, while Layer 2s and newer infrastructure plays bore the brunt of selling pressure.
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Bitcoin held relatively steady at $66,939 (+0.75% over 24 hours), while Ethereum slipped to $1,947.68 (-0.36%), keeping the ETH/BTC ratio under pressure. BTC dominance continued to grind higher as capital rotated selectively — rewarding specific narratives rather than lifting the altcoin market broadly.
Solana traded at $82.33 (+1.0%), BNB at $607.21 (+0.4%), and XRP at $1.41 (-0.86%), suggesting the large-cap altcoin tier was largely range-bound.
Top Gainers
1. Pi Network (PI): +30.1% → $0.1755
Pi Network was the week's standout performer, surging 30.1% to $0.1755 on $24.04M in daily volume, pushing its market cap to $1.58B. The rally appears driven by renewed community momentum and speculation around mainnet migration milestones.
However, with relatively thin volume compared to its market cap, this move carries elevated risk of a sharp reversal if momentum fades. Sustainability here depends entirely on whether the project can convert its massive user base into real on-chain activity.
2. Morpho (MORPHO): +25.69% → $1.38
Morpho climbed 25.69% to $1.38, with a market cap of $756.52M and $16.15M in daily volume. The DeFi lending optimizer has been gaining traction as a capital-efficient alternative to traditional lending pools.
This move aligns with a broader DeFi resurgence this week — Aave also posted double-digit gains. The catalyst for Morpho specifically is unclear, but rising DeFi TVL across Ethereum-based protocols likely provided a tailwind.
3. Midnight (NIGHT): +24.32% → $0.0627
Midnight gained 24.32% to reach $0.0627, bringing its market cap to $1.04B on $20.98M in volume. The privacy-focused blockchain built on Cardano's technology stack has been generating interest, though the specific catalyst behind this week's move is unclear. Privacy narratives tend to be episodic — traders should watch whether volume sustains above current levels before reading too much into the move.
4. Stable (STABLE): +22.84% → $0.0290
Stable posted a 22.84% gain to $0.0290 with a notable $28.68M in daily volume against a $524.21M market cap. The timing is notable: the White House signaled this week that it favors certain stablecoin rewards and urged banks to engage with the sector. Any token associated with the stablecoin narrative likely benefited from this regulatory tailwind.
5. Cosmos Hub (ATOM): +16.55% → $2.29
ATOM rose 16.55% to $2.29, with $51.49M in daily volume and a $1.13B market cap. The Cosmos ecosystem has been quietly rebuilding after a turbulent period, and interchain security adoption continues to expand. ATOM's volume-to-market-cap ratio looks healthy, suggesting this move isn't purely speculative froth.
Notable Mentions
Aave (AAVE) gained 12.93% to $124.61 ($1.89B market cap, $257.64M volume), reinforcing the DeFi lending narrative alongside Morpho.
Zcash (ZEC) surged 12.79% to $261.97 with a $4.34B market cap and $227.33M in volume — a notable move for the privacy coin.
Bittensor (TAO) added 15.17% to $176.99, riding the AI-crypto crossover narrative as AI disruption mentions tripled in Q4.
PEPE climbed 15.08% to $0.00000423 on a massive $248.57M in daily volume — memecoins still command attention when risk appetite returns.
Top Losers
1. Arbitrum (ARB): -11.44% → $0.0979
Arbitrum was the week's biggest loser, falling 11.44% to $0.0979 with a $570.44M market cap and $96.66M in daily volume. The Layer 2 has been under sustained pressure as competition from rival rollups intensifies and token unlock schedules weigh on price.
At sub-$0.10, ARB is trading at levels that may attract dip buyers, but the high volume on the decline suggests active distribution rather than passive drift. This could have further downside before finding a floor.
2. Pippin (PIPPIN): -10.15% → $0.4793
Pippin dropped 10.15% to $0.4793 on $40.05M in volume against a $477.89M market cap. The decline comes amid broader caution around newer tokens — the LIBRA scandal that saw traders lose significant capital has cast a shadow over speculative plays. Sentiment around smaller, narrative-driven tokens has cooled measurably.
3. Internet Computer (ICP): -7.93% → $2.18
ICP fell 7.93% to $2.18, with a $1.2B market cap and $45.22M in volume. The project continues to struggle with market perception despite ongoing technical development. ICP has been in a persistent downtrend, and each bounce has been sold into.
4. MemeCore (M): -7.53% → $1.35
MemeCore declined 7.53% to $1.35, with a $2.34B market cap but notably thin volume at just $9.06M. That volume-to-market-cap ratio is a red flag — it suggests limited liquidity and the potential for outsized moves in either direction.
5. Hyperliquid (HYPE): -6.36% → $29.03
Hyperliquid's HYPE token shed 6.36% to $29.03, though it still commands a substantial $6.92B market cap with $186.29M in daily volume. The decentralized perpetuals exchange remains one of the higher-conviction plays in DeFi, and this pullback looks more like healthy consolidation after prior gains. Watch the $27–28 range as potential support.
Other notable decliners include Sei (SEI) at -5.96% to $0.0703, Aptos (APT) at -5.6% to $0.8658, and Ethena (ENA) at -5.39% to $0.1107 — all Layer 1 or infrastructure plays struggling to hold bids in a market rewarding specific narratives over broad infrastructure bets.
Narrative Watch
No single dominant narrative rotation emerged this week, but several themes are worth tracking.
DeFi lending showed clear strength with both Morpho (+25.69%) and Aave (+12.93%) outperforming — capital efficiency in lending is clearly attracting attention.
Stablecoin-adjacent plays got a boost from the White House's pro-stablecoin stance, and with a March 1st deadline set for crypto market structure bill resolution, this narrative has a concrete timeline.
Meanwhile, Layer 2 tokens continued to bleed, with Arbitrum leading losses and Sei also down nearly 6%. The L2 trade that dominated 2024 sentiment appears to be fully unwinding.
AI-crypto crossover tokens like Bittensor (+15.17%) remain in play, though the narrative is increasingly crowded.
Onchain observation: Small Bitcoin wallets have been actively buying the dip while mid-sized holders remain absent, according to AMBCrypto data. This divergence between retail accumulation and institutional hesitation often precedes periods of extended consolidation.
What to Watch Next Week
March 1st Crypto Bill Deadline — The White House has set a March 1st deadline for crypto market structure bill resolution. As that date approaches, expect increased volatility around regulatory-sensitive tokens. Stablecoin-related assets and exchange tokens could see the most direct impact.
Bitcoin Options Expiry & $60K Retest Risk — The options market structure currently leans toward a $60K retest. If BTC breaks below key support levels, altcoins — particularly those with weak volume profiles like MemeCore and Kaspa — could see amplified downside.
CFTC-SEC Collaboration Signals — Acting CFTC Chairman Caroline Pham has emphasized the importance of collaboration with the SEC and a positive regulatory posture for crypto. Any concrete announcements from either agency could shift sentiment quickly across the board.
