Key Points
CryptoQuant CEO, Ki Young Ju, recently shared his thoughts on the future of altcoins.
He believes the altcoin market is a “zero-sum PvP game”.
This means that gains are primarily internal, with no new capital entering the market.
In such a scenario, one person’s gain is another person’s loss.
It’s like a competitive game where the overall money pool doesn’t increase.
The Bitcoin and Altcoin Divide
According to Ju, the market value of Bitcoin (BTC) has doubled.
However, the total market capitalization of altcoins hasn’t reached past all-time highs.
He suggests that only a handful of altcoins with robust narratives and real use cases will survive.
On the other hand, Citi analysts predict a different future for altcoins.
They argue that the sector could have a much brighter future.
Ethereum (ETH), the only cryptocurrency besides BTC approved for spot ETFs, is seen as a likely target for market rotation.
Citi analysts admired BTC’s 2024 breakout, which saw a 116% increase on the year.
Major catalysts included the approval of spot BTC ETFs, the halving event in mid-April, and Donald Trump’s election victory.
However, they predict an ‘altcoin season’ in 2025, following a strong year for Bitcoin.
They also anticipate growth for Ripple (XRP), Solana (SOL), and Tron (TRX).
According to a Pitchbook report, crypto fundraising in Q1 2024 surged to $2.4 billion across 518 deals.
This was a 40.3% increase in invested capital and a 44.7% rise in deal volume compared to the previous quarter.
AI secured the largest funding in Q3 with $106 million at a $1.1 billion pre-money valuation.
These figures suggest an increasing interest from investors in early-stage projects.
Early-stage deals saw a 148.3% year-on-year increase in median pre-money valuation.
If these trends continue, investments in specific projects and categories that are well-positioned for long-term success could surge.
This would reinforce both Ju’s focus on robust narratives and Citi analyst’s prediction of a broader “altcoin season”.