1. Broader Crypto Market Sell-Off

The biggest factor behind altcoin weakness is Bitcoin’s sharp correction.

According to LiveMint, Bitcoin has fallen over 19% in February 2026, marking its worst monthly performance in nearly four years .

When Bitcoin falls sharply:

• Altcoins typically drop harder

• Leverage gets wiped out

• Retail sentiment weakens

Recent reports show Bitcoin hovering near $65,000 amid risk-off sentiment — and when BTC struggles, ETH, SOL, and DOGE usually follow.

2. Massive Liquidations Triggered a Cascade Effect

One of the major triggers this month has been large-scale liquidations.

MEXC News reports that over $2.56 billion in liquidations occurred in early February during what traders called “Black Sunday II” .

Liquidations create:

• Automated forced selling

• Rapid price drops

• Panic-driven market behavior

Reddit market discussions confirm that February 2–8 saw synchronized price and TVL declines across Ethereum and Solana ecosystems .

This suggests a systemic risk-off event — not isolated weakness.

3. Geopolitical & Macro Uncertainty

Markets are not reacting to crypto news alone.

Recent geopolitical tensions and risk-off behavior have pushed investors toward cash and safe-haven assets, increasing pressure on high-risk assets like crypto .

Additionally:

• Tariff concerns

• AI-sector volatility

• Equity market weakness

All of these factors reduce speculative capital flows into altcoins.

Crypto tends to fall first when macro uncertainty rises.

4. Ethereum-Specific Weakness

Ethereum has underperformed during this cycle.

A recent market update shows ETH dropped nearly 29.7% in one week, with declining DeFi TVL and competitive pressure from other chains .

Key Ethereum challenges:

• Layer-2 revenue dilution

• Declining DeFi activity

• ETF outflows

• Risk-off environment

Another report notes Ethereum weakened after Bitcoin’s plunge, falling below $1,800 at one point before recovering .

While long-term fundamentals remain intact, short-term price pressure is evident.

5. Solana Under Ecosystem & Technical Pressure

Solana has also been under intense pressure.

Technical analysts point out bearish patterns and continued downside risk if key support levels break .

Additionally:

• Broader market selloff

• Reduced TVL

• Increased volatility in meme and DeFi sectors

Reddit market data showed Solana dropped over 13% during the early February downturn .

When risk appetite declines, high-beta assets like SOL often experience sharper drawdowns.

6. Dogecoin: Pure Risk Sentiment Play

Dogecoin is heavily sentiment-driven.

Recent reports show DOGE dropping amid broader market weakness and macro shocks .

Unlike Ethereum or Solana:

• DOGE has limited ecosystem fundamentals

• It reacts strongly to risk-on / risk-off cycles

• Retail-driven flows dominate price movement

When fear rises, meme coins usually fall faster.