AI, DeFi, and infrastructure may recover as regulation and adoption improve.
Altcoins have struggled to establish a sustained uptrend over the past several months. Many investors accumulated alternative cryptocurrencies during Q2 and the first half of Q3 2025, expecting outsized gains once Bitcoin regained strength. That expectation failed to materialize as Bitcoin rallied while most altcoins stagnated.
During that period, capital remained parked in altcoins despite limited upside. Investors largely chose to HODL, anticipating a delayed rotation. Instead, relative weakness persisted, with altcoins underperforming Bitcoin.
Thus, in an exclusive interview with BeInCrypto, Michaël van de Poppe highlighted what the past suggests about the future and what the altcoin market could look like in 2026.
October 2025 briefly altered sentiment. Several altcoins registered sharp rallies, reigniting speculation that an altcoin season had finally arrived. That momentum faded quickly. Prices retraced within weeks, erasing gains and reinforcing skepticism across the market.
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Since then, frustration has intensified. Altcoins continue to print lower lows against Bitcoin pairs. Michaël van de Poppe compared the current environment to Q3 2019 and mid-2015. He noted widespread exhaustion among investors watching other asset classes outperform, which might end in 2026.
“The coming year should be the change of this pattern, in which patient investors will be rewarded for their willingness to take bets within the Web3 ecosystem and therefore, selectively, crypto protocols should be yielding a positive return,” Michael highlighted.
Michael stressed that portfolio construction must be rooted in fundamentals rather than narratives. He warned that chasing trending sectors or single “favorite” protocols introduces unnecessary risk. Market leadership often rotates unexpectedly, especially during transitional phases.
Instead, his approach prioritizes protocols that consistently expand. Development activity, ecosystem growth, and real usage matter more than short-term price performance. According to van de Poppe, these factors eventually drive valuation once sentiment stabilizes.
“I’m looking at protocols which are building technology that is ultimately required within the entire on-chain ecosystem or their entire ecosystem in terms of activity, total value locked and revenues have been growing,” said Michael.
He highlighted Arbitrum (ARB), Chainlink (LINK), and Near Protocol (NEAR) as examples. Each protocol has delivered steady progress over the past year despite broader market weakness. Their ecosystems continued building while prices lagged.
Among the three, Chainlink stands out. Development data shows LINK has significantly outperformed ARB and NEAR. That sustained expansion helped support the launch of a LINK ETF, reinforcing the link between fundamentals and institutional adoption.
From a macro perspective, van de Poppe remains focused on artificial intelligence, decentralized finance, infrastructure, and DePIN. He believes regulatory developments will eventually unlock growth across these sectors. The CLARITY Act, in particular, could strengthen DeFi participation.
“On top of that, I think that the connection between AI Blockchain is going to be more significant, while DePIN (also storage / robotics) are going to see a lot of momentum with the fact that AI is more and more integrated within those systems,” Michael stated further.
Despite that outlook, market data paints a challenging picture. DePIN tokens entered 2025 with a combined valuation of $29.33 billion. As of today, that figure has declined to $11.97 billion, according to CoinGecko. Investor demand remains limited.
AI-related crypto assets have followed a similar trajectory. Their combined market capitalization fell from $52.3 billion to $19.9 billion over the past year. This decline highlights the gap between long-term potential and near-term adoption.
Looking ahead, van de Poppe emphasized disciplined risk management. He acknowledged ongoing bear market risks but argued that crypto has already endured a prolonged four-year downturn. From his perspective, positioning now requires patience rather than aggressive speculation.
“…my gameplan is that I’m remaining positioned with my current portfolio in the markets and, a part of that, will be traded actively, so I’ll remain having the flexibility to be exiting the markets whenever that is required. For any general investor in the markets, have clear invalidation levels (this can be fundamentally, doesn’t have to be technically) where you’re looking to be getting out of the markets,” Michael stated.
Recent Bitcoin declines have largely resulted from liquidation-driven events rather than sustained selling. CoinGlass data shows approximately $2.58 billion in long liquidations concentrated below the $86,000 level. That zone has acted as a temporary stabilizer.
Thus, caution is suggested if Bitcoin approaches that threshold. A breakdown could trigger cascading sell-offs, dragging altcoins lower. In that scenario, exiting positions would be prudent. Until then, altcoin investors may need to endure continued consolidation as markets reset expectations.
