The cryptocurrency market is experiencing a notable divergence between major assets like Bitcoin and Ethereum, and smaller altcoins. While the former are trading relatively close to their yearly highs, the latter have corrected significantly, with some losing up to 70% of their value. This disparity highlights the challenges faced by altcoin investors amidst broader market consolidation.

Several factors are contributing to the pressure on altcoins. Venture funds that invested heavily in recent years are now selling their assets to realize profits, leading to increased selling pressure. Planned unlocks and distributions are also adding to the supply of coins/tokens, exacerbating the issue. For instance, Solana's daily supply inflates by 75,000 coins, equivalent to $10 million at current prices, while Arbitrum's price has dropped to near all-time lows despite its market cap growth.

The lack of fresh capital inflow into the cryptocurrency market is particularly affecting altcoins with upcoming major unlocks and AirDrop programs. The absence of demand means there isn't enough liquidity to absorb the continuous new supply of coins/tokens. Stablecoin balances on exchanges, which serve as potential purchasing power for traders and investors, have also dropped significantly. Historical seasonal trends are also working against altcoins, with June typically being a bearish month for smaller altcoins.

The shift in investment focus from cryptocurrencies to emerging technologies like artificial intelligence is further affecting altcoin performance. Venture capital funds are redirecting their attention and capital to AI, leading to additional selling in the cryptocurrency market. As a result, the altcoin market is under significant pressure due to venture fund sales, increased coin/token supply, stagnant capital inflow, and unfavorable seasonal trends.

In conclusion, while major cryptocurrencies remain relatively stable, the altcoin market is facing significant challenges. The divergence in the cryptocurrency market is straining altcoin investors, and the shift in investment focus to technologies like artificial intelligence is adding to the pressure. As the market continues to evolve, it is essential for investors to be aware of these dynamics and adjust their strategies accordingly.