The cryptocurrency market is currently experiencing a challenging period for altcoins, which are struggling to maintain their value due to various factors. One major issue is the constant release of new tokens, which dilutes the existing supply and puts downward pressure on prices. This is particularly affecting smaller cryptocurrencies, which are facing significant corrections and price declines.

Another significant factor is the selling pressure from venture capital funds. These funds invested heavily in the crypto space in the past and are now under pressure to realize their profits. This has led to a surge in token sales, further exacerbating the selling pressure on the market.

Additionally, the lack of fresh inflows into the crypto market is also contributing to the struggles of altcoins. With limited capital entering the market, there is insufficient demand to absorb the available token supplies, leading to price declines. This is particularly true for tokens with significant upcoming unlocks or new token programs.

Historically, June has been a bearish month for altcoins, with data indicating a consistent decline in the total market capitalization of cryptocurrencies excluding Bitcoin and Ethereum during this period. This June is following the trend, with a current 11% decrease in the TOTAL.3 metric, reflecting the challenging environment for smaller tokens.

Overall, the combination of token unlocks, venture capital sell-offs, and limited capital inflows is creating a difficult environment for altcoins, leading to significant price declines and a challenging market for investors.