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Are altcoins cooling down? analysts' views on the market this cycle
Xu long investors expressed concern about the Crypto Assets market correction in this cycle. The falling price of Bitcoin dragged down the alt, and as a result, some areas of the Crypto Assets community began to brew more pessimism.
Analysts and traders assure investors that market Fluctuation is a normal part of the process. Some urged the community to look at the bigger picture, as altcoins remain above levels not seen in longest years.
Altcoin Sherpa, a prominent Crypto Assets alts analyst, weighed on the matter, exploring some of the reasons and differences why this Bull Market cycle is different from the 2020s.
In an X post, alt Sherpa asserted that "there is a good chance that altcoins will be phased out in the next 1-4 months". According to the analyst, most long markets need to "calm down and consolidate after such a big upside pump".
Despite the recent market capitalization fall breaking $1 trillion, alts has performed well over the past few months. According to the data, in 2024, the Crypto Assets market capitalization rise excluding Bitcoin increased by 22.79%.
alts market capitalization has also surged significantly over a longer period of time, rise by 91.31% and 52.46% over the past six months and last year, respectively. Sherpa called it a "big pump" that put the Crypto Assets market at 2022 levels.
However, what worries the Crypto Assets analyst is that, despite the overall good performance, "Xu long alternatives haven't even worked as hard in the past few months." He made his point with Chainlink's native Token, LINK.
Despite accumulating over 500 days, LINK investors only made 3-4x gains, depending on when they entered. Now the price of the Token is on a "strong pullback". Anticipation of altcoins in this cycle seems to play an important role in the current mood.
As one X user pointed out, LINK is expected to be one of the biggest winners of the cycle, to which Sherpa replied that he was "expecting longest haha." The user jokingly commented, "Without dinosaur coins, new, shiny hard coins are a better option." ”
Previous comments have highlighted the significant differences between this Bull Market and the 2020s. Since the market has expanded significantly, it has become more difficult to choose your bag. Sherpa believes that "now more than ever, it is important to choose altcoins that can run strongly." In 2020, the massive alt season made "everything pump up one after another."
This time, Liquidity is more fragmented, with "only a handful of sectors pumping." The AI and internet meme space is the hottest topic in 2024, and Layer 1 (L1) Tokens like SEI are also performing well. "Is there anything else? not very good," the Sherpa commented.
A large number of Token, both newly launched and old Token, find it more difficult to "attract attention/attention".
For retail investors, the default choice is memecoin rather than "trying to understand something Decentralized Finance veRewards type," which is not surprising to analysts. Or Oracle, L1, modular, or whatever. The analyst advises investors to "turn to real value," such as ETH and SOL. He also believes that large token issuances backed by a lot of money "have some real value". As stated in the post, these Tokens have the potential to "outperform" once Bitcoin stabilizes.
Sherpa market analysis ends with a "rather pessimistic" outlook for the coming months. For longest projects, it is becoming increasingly difficult to maintain user attention and "make people strong users/community members", which makes the market a different playground. Ultimately, the analyst noted that "portfolio rebalancing is necessary" and said he still believes that this round of movement is not over.
(Source: Rubmar Garcia)
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