Solana, Arbitrum Shrug Off Major Catalysts: Is the Altcoin Market Flatlining?

Despite major catalysts like Solana moving closer to a staked ETF (exchange-traded fund) launch, and Robinhood’s integration of Arbitrum, both SOL and ARB altcoins barely moved.

Against this backdrop, some analysts say this lack of reaction is a troubling signal that altcoin season may have flatlined. However, others argue this is merely the calm before a “disbelief rally” that will kickstart the next great altcoin bull run.

Has Altcoin Season Flatlined—or Is a Disbelief Rally Brewing?

Analysts highlight the market’s weakness, with altcoins disregarding what would otherwise be bullish catalysts to drive price.

In particular, the price of SOL shrugged off hype following prospects of a staked Solana ETF, while ARB failed to move despite its said integration with the Robinhood app.

SOL/USDT, ARB/USDT Price Performance. Source: TradingView

The subdued price action around what would have been major bullish news in prior cycles has raised existential questions about the current state of the altcoin market.

Pink Brains co-founder, who goes by the pseudonym DeFi Ignas, suggested this could be the result of a shift from speculation to utility.

“We turned the old critics’ saying of ‘blockchain, not crypto’ into reality. Blockchains are useful, but tokens aren’t. At least not without a clear value proposition,” DeFi Ignas shared in a post.

Ignas sampled Ethereum as the pioneer altcoin, questioning whether the issue is with Ether or the broader lack of economic value tied directly to many tokens.

He said this contrasts them with Bitcoin because its product is the coin itself. According to the DeFi researcher, this disillusionment stems from overexposure to low-value projects.

“Our speculative spirits faded as overvalued tokens flooded the market with downward-only charts, and the promised riches from trading meme coins ended into ruin. When you continue to lose money, you stop playing. You stop believing a new altcoin market is possible,” he added.

Why the Next Altcoin Rally May Favor Quality Over Quantity

Yet, Ignas does not think this is the end. Instead, he sees opportunity in a filtered altcoin universe. He believes a rally will come, one driven by a select group of tokens with real value.

“Yes, I believe a huge bull run will come for a select number of alts that prove: Great PMF [product-market fit], built-up Lindy effect, revenue and value accrual to the token, and adoption by TradFi…[To spark this new wave], we just need to focus our attention on a few Schelling point tokens [and] start believing,” Ignas concludes.

However, not everyone is convinced. Mert Helius, another DeFi researcher and CEO of Helius Labs, posed a pointed alternative based on growing traction for tokenized stocks.

what if stocks were the alt-season all along

— mert | helius.dev July 2, 2025

BeInCrypto reported analysts’ fears that tokenized stocks might further fragment liquidity, especially with multiple wrappers and standards emerging.

That, combined with weak altcoin fundamentals, could make it more difficult for the next cycle to mirror the last one.

Amid the new frenzy, some analysts fear traditional finance (TradFi) may capture much of the value blockchain technology creates, while crypto-tokens continue to lag.

Still, believers in a filtered, value-driven rally remain. If altcoin season is coming back, it might look very different. Specifically, it might involve less hype, more product-market fit, and a clearer link between protocol usage and token value.