Veteran on-chain analyst Willy Woo says that altcoins will get continuously less explosive over time as the crypto market matures.
Woo tells his 1.1 million followers on the social media platform X that the current market cycle has been “markedly different” from the others given that it is the third time that altcoins are reaching for mindshare since 2017.
Rather than being focused on decentralized finance (DeFi) or some kind of technological innovation, Woo says that the current altcoin hype is mostly focused on memes, which he believes is a poor take on the crypto space.
Says the analyst,
“I’m not saying there won’t be alt seasons. Certainly there will be echo fractals of mid-caps and low-caps pumping after BTC pumps as investors chase returns higher up on the risk curve. This is a normal part of markets and we see this in equities. Just alt seasons will be weaker each cycle on from the great 2017 alt bubble.
Also, remember alt market cap is like the cricket bat that has had 10 new handles and 10 new blades, it’s the sum of all the new winners… losers don’t count to the market cap.
Trade it sure, if you want to play… don’t ever HODL (hold on for dear life) them unless you’re so knowledgeable that you’re an effective insider because alts are an insider’s game just like the casino where the house will eventually win. But you already know that.”
At time of writing, Bitcoin (BTC) dominance (BTC.D), which compares the market cap of Bitcoin to all other crypto assets, is valued at 59.38%, a three-and-a-half-year high.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here
