Renowned on-chain analyst Willy Woo predicts that as the crypto market matures, altcoins will become less volatile over time.
With over 1.1 million followers on X, Woo notes that the current market cycle is distinct from previous ones, as it is the third time altcoins are vying for attention since 2017.
Instead of focusing on decentralized finance (DeFi) or technological advancements, Woo observes that the current altcoin frenzy revolves around memes, which he views as a superficial aspect of the crypto industry.
According to the analyst,
“I’m not ruling out the possibility of alt seasons. There will likely be periods where mid-cap and low-cap coins surge following Bitcoin’s rally as investors seek higher returns. This trend is common in markets, akin to what we see in equities. However, each alt season in subsequent cycles is expected to be less intense compared to the 2017 altcoin bubble.”
Furthermore, Woo emphasizes that the total altcoin market capitalization is a cumulative representation of successful projects, with unsuccessful ones not impacting the market cap.
“While trading altcoins can be tempting, it’s advisable not to hold onto them long term unless you possess deep insights and expertise, as the altcoin market operates similarly to a casino where the odds favor the house in the long run.”
Currently, Bitcoin dominance (BTC.D), which measures Bitcoin’s market cap against other cryptocurrencies, stands at 59.38%, its highest level in over three years.
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Image Credit: Midjourney