On-chain analyst Willy Woo believes that the explosive growth potential for altcoins will continue to decline as the cryptocurrency market evolves. He notes that this current cycle is different from previous ones, as it is the third time since 2017 that altcoins are vying for attention. Unlike past periods focused on decentralized finance (DeFi) and groundbreaking technology, the current altcoin enthusiasm largely revolves around memes, which Woo sees as a misstep for the crypto landscape. Although altcoin seasons will still happen, he expects them to be less vigorous than in previous years.
Woo predicts that mid-cap and low-cap coins will experience price surges following Bitcoin’s rallies, as investors seek higher returns along the risk spectrum. However, he warns that these altcoin seasons will not be as powerful as the significant bubble witnessed in 2017.
In his assessment, Woo compares the evolving altcoin market cap to a cricket bat that undergoes various modifications. Only new successes contribute to its value, while past failures fade away. He suggests that trading altcoins can be profitable but advises caution for those considering long-term holdings unless they possess substantial market knowledge. The altcoin arena often resembles a casino where the odds favor the house.
Currently, Bitcoin dominates the market, holding a share of 59.38%, marking its highest level in three and a half years.