CryptoQuant Highlights Altcoins That Could Outperform Bitcoin in Returns
According to an expert, a true altcoin season is unlikely in the near future: the market is oversaturated, and the number of tokens has surpassed 43 million. The excessive number of projects leads to the dilution of investment fund capital, hindering overall growth.
“Only select premium altcoins with strong fundamentals will show growth. A repeat of the mass altcoin seasons of 2017 and 2021 is highly unlikely,” said Oynonen.
The CryptoQuant analyst believes that investors are now behaving more cautiously and selectively, increasingly evaluating projects based on fundamentals rather than marketing campaigns.
The altcoin market remains in an early development stage, Bitcoin’s dominance exceeds 60%, and coins lacking liquidity and strong teams have lost investor appeal. According to the analyst, strong triggers for a successful altcoin rally could include:
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Bitcoin dominance dropping below 50%,
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growth of Ethereum,
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and active participation from Asian market investors.
Earlier, the founder of the world’s largest crypto exchange Binance, Changpeng Zhao, stated that only a few altcoins currently trading below their 2021 peaks will be able to set new all-time highs.
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