Popular cryptocurrency analysts have announced critical levels for these altcoins! These altcoins can surpass Bitcoin (BTC) with their performance in the near future! Here are the details…
Analysts explained: These altcoins may explode!
Bitcoin dominance is currently in an uptrend, with experts predicting an increase of up to 60 percent in the short term. Given the low liquidity among most altcoins, technical analysts advocate a “devaluation thesis” for BTC pairs of most altcoins.
However, Benjamin Cowen, CEO and founder of IntoTheCryptoverse, commented on the growing dominance of the largest asset by market cap. Bitcoin dominance currently stands at 47.7 percent, according to TradingView data. The dominance of the asset has been on the rise since November 27, 2022, and analysts have set a target of 60 percent for BTC dominance.
When Bitcoin dominance wanes or declines, it is a sign of a return of capital to altcoins. This is called “alt season”, and altcoin communities have been speculating about an alt-season rally for weeks in tweets. If Bitcoin’s dominance continues to rise in line with Cowen’s thesis, alt season may be far away for crypto market participants.
Low liquidity for altcoins! So what does this mean for altcoin projects?
For altcoins, trading volume is considered a measure of the liquidity of the asset. Cowen argues that most alternative cryptocurrencies have low liquidity, and alongside Bitcoin’s dominance, this is a bearish sign for alt season. The words of the famous name are as follows:
I mean, I see BTC dominance go up to 60 percent. Altcoin liquidity is very low right now, so they can lose value in BTC pairs pretty quickly. For altcoins, I think it will continue to flow back into BTC for at least a few more months. Some altcoins may remain strong, but most will not.
This also means that the value of BTC pairs of altcoins could drop rapidly and capital could continue to return to Bitcoin in the short term.
So which altcoins can rise?
Liquid Staking coins
With the Ethereum Shanghai hard fork and token unlocking just a short while away, liquid staking coins have attracted the attention of the market. Lido Staked Ether (STETH), Rocket Pool ETH (RETH), Frax Ether (FRXETH) have gained 3-5 percent to their holders over the past week. With liquid staking gaining prominence and the upcoming ETH token unlocking, there is the possibility of a capital rotation in these coins fueling a rally in the short term. However, it seems likely that the Shanghai hard fork will be priced in, and in that case, token unlocking may not be an event.
Avalanche ecosystem
In the past few months, Avalanche Labs has shed light on the coins of its ecosystem by announcing its partnerships with many big brands and giants such as Amazon. Injective (INJ), GMX, Maker (MKR), and Sushi (SUSHI) have earned about 5 percent over the past week. These coins emerge as the top-earning altcoins of the Avalanche ecosystem and have witnessed price rallies in response to recent updates and announcements by the respective coins. AVAX ecosystem coins are likely to generate more profits if partnerships increase the use of these tokens in the near future.
Cardano ecosystem
cryptocoin.com As we reported, there are approximately 8 million native coins and more than 4 million unique wallets in the Cardano ecosystem. The growth of the ADA network exploded in the months following Ethereum’s Merge update, and the altcoin’s ecosystem tokens Chainlink (LINK) and Cardano (ADA) are on their way to recovering from their recent declines. The ecosystem is likely to grow further with the release of the scaling solution Hydra, according to experts.
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