On-chain analytics from Glassnode show that only approximately 5 % of the circulating supply of the top 500 altcoins currently trade in profit, suggesting a deep-capitulation phase in cryptocurrency markets. The divergence between altcoins and major tokens such as Bitcoin indicates heightened risk for investors relying on historical correlation patterns. The metric implies lasting weakness in speculative assets and could encourage a rotation toward large-cap crypto or regulated offerings. Crypto strategists note that this condition may persist until liquidity recovers or valuations reset.