The CEO of CryptoQuant, an online market analytics firm, predicts that altcoins may not be game-changers in 2025. However, analysts at Citi share positive sentiments. What will 2025 be like for altcoins?
Ki Young Joo, CEO of CryptoQuant, tweeted on January 10 that the altcoin market is in a “zero-sum PvP game,” where gains are largely internal, with no new capital flowing into the market. This means that in the current altcoin market, for someone to win, someone else must lose the specified amount. It's reminiscent of a competitive game in which the total money doesn't actually increase.
Joe says that Bitcoin (Bitcoin) Market capitalization has doubled while the overall market cap of altcoins is still below all-time highs, with only “3-5 altcoins” with a real use case and strong narratives that can survive.
However, the fate of altcoins is expected to have a different outlook. Citi analysts say the sector may be in for a brighter future. Ethereum (Ethereum), the only cryptocurrency besides BTC to get the green light Spot ETFsis considered an increasingly potential target for rotation within the market sex It's January. 8, 2025.
Citi analysts believe Bitcoin's 2024 breakout has been one to watch, rising 116% over the year, with major catalysts including the approval of Bitcoin ETFs, the mid-April halving event, and Donald Trump winning the US election. However, analysts say, an “altcoin season” in 2025 after a “strong year for Bitcoin” is more likely, with Ethereum up 59% in the space of one month. Analysts also expect growth for Ripple (XRP), Solana (SolAnd you seeTRX).
How will altcoins perform in 2025?
In 2025, new narratives are likely to emerge and venture capital activity may pick up significantly. according to Promotion bookcryptocurrency fundraising in the first quarter of 2024 rose to $2.4 billion across 518 deals, reflecting a 40.3% increase in invested capital and a 44.7% increase in deal volume compared to the previous quarter.
For example, AI received the largest funding in the third quarter at $106 million at a pre-valuation of $1.1 billion. These numbers indicate increasing investor appetite for early-stage projects. Early stage deals saw a 148.3% year-over-year increase in average pre-fund valuation. If these trends continue, investments in certain projects and categories that are well-positioned for long-term success will see a boom, reinforcing Joe's focus on strong narratives and Citi analysts' expectations of a broader altcoin season.
Source link