Altcoins
Analysts predict potential market cap of $4 trillion by 2025
Altcoins have always been overshadowed by Bitcoin’s dominant market presence. However, recent fluctuations in the value of Bitcoin and the growing popularity of altcoins suggest that the tide may be turning.
Jamie Coutts, former Bloomberg analyst suggests an altcoin investment strategy that involves monitoring the trend of smart contract platforms (SCPs) and the status of the Altseason Index, which tracks digital assets that have outperformed Bitcoin over the past 90 days.
SCP is currently in an uptrend, which indicates that the market is bullish. SCP is expected to surpass its March high, thus satisfying the first condition. However, the Altseason Index is in a downward trend at the moment, with the index currently sitting at around 26%, indicating that the second condition is not met. This means that BTC remains dominant and, despite a recent resurgence in Ethereum (ETH), this has not significantly affected the SCP sector as a whole.
Depending on the state of the crypto market, president and liquidity cycles, alternative indicators are expected to emerge in the coming weeks. In the meantime, investors can choose to predict this signal or pay attention to assets that have already shown strong performance based on the SCP sector. For the SCP sector, Solana ($SOL), Near Protocol ($NEAR), and Toncoin ($TON) are currently the three tokens that have the strongest relative strength compared to Bitcoin.
Tim’s Forecast: Altcoin Market Rise Ahead
Another prominent analyst, Tim, shares Coutts’ optimistic view on altcoins. Tim believes we are on the verge of an unprecedented altcoin season. Based on the accumulation and breakout phases observed historically, the altcoin market capitalization is expected to increase from its current value of $1.156 trillion to $4 trillion by 2025.
However, investors should be careful. Although the potential rewards are great, the timing of entry is crucial. Analyzing the dynamics of the SCP sector and the Altseason Index will be crucial in navigating this potentially lucrative but complex investment landscape.
Related reading | Solana Validators Boost Security with 77% Voting Approval