- Ki Young Ju states the altcoin market is a “zero-sum PvP game” where profits are recycled, with no new capital entering.
- Bitcoin has surged, but only 3-5 altcoins are expected to survive, supported by solid use cases and compelling narratives.
- Citi analysts predict Ethereum will lead the altcoin market in 2025, with Ripple, Solana, and Tron poised for growth during the altcoin season.
Ki Young Ju the CEO of CryptoQuant analyzed the current state of the altcoins, stating that the market is a “zero-sum PvP game.” In this market structure, the advantage that one player has is the disadvantage of the other player with no new money coming into the industry. This observation is consistent with the argument that the altcoin market is staled, with profits being recycled rather than increased.
Altcoin Market’s Future Outlook
Ju emphasized the tremendous increase in Bitcoin as well as its market value which has recently has doubled. However, most of the altcoins are still struggling to reach their former all-time record prices. He expects that only between three and five out of the current ones will belong to that category in the future owing to their well-defined use cases and powerful stories. Some of these altcoins are expected to survive through the storm when most of the other altcoins will be struggling for survival.
However, other analysts are more hopeful about the future of altcoins than those mentioned above. Citi analysts gave the sector a positive outlook in a recent report. They pointed to Ethereum which has appreciated by 59% in just one month. The approval of spot ETFs for Ethereum and Bitcoin puts the Ethereum to lead the altcoin market in 2025.
Rising Investment in Crypto and AI Projects
Citi’s analysts also predicts that other cryptocurrencies such as Ripple, Solana, and Tron (TRX) will rise significantly. As the Bitcoin rally was strong in 2024, experts expect that the market may shift to move to altcoins, which they call the “altcoin season.” According to the analysts, with Ethereum rising in the future, the altcoins will also see the next market bull run.
The overall investment environment is also improving due to broader market trends. As reported by Pitchbook, crypto fundraising surged in Q1 2024, and $2.4 billion was collected in 518 deals. This represents a 40% increase in capital committed from the prior quarter, which shows that investors are becoming more optimistic about the prospects of crypto projects.
AI projects also claimed a significant proportion of this capital, raising $106 million in Q3 2024 and valuing the pre-money at $1.1 billion. This shows that there is rising investors’ interest in high return sectors. If this trend is to remain constant then it will be a positive for altcoins especially those with good stories and purpose.
