Altcoin

Analysts predict a potential market capitalization of $4 trillion by 2025

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Altcoins have historically been overshadowed by Bitcoin’s dominant market presence. However, recent fluctuations in the value of Bitcoin and the growing popularity of altcoins suggest that this may be changing.

Former Bloomberg analyst Jamie Coutts suggest a strategy for investing in altcoins that involves monitoring the performance of smart contract platforms (SCPs) and the state of the Altseason index, which tracks digital assets that have outperformed Bitcoin in the last 90 days.

The SCP is currently in an uptrend, which indicates that the market is bullish. SCP is expected to surpass its March high, thus satisfying the first condition. However, the Altseason index is trending downwards for now, with the index currently sitting at around 26%, which indicates that the second condition is not met. This means that BTC remains dominant, and despite Ethereum (ETH)’s recent rally, it has not significantly affected the broader SCP sector.

Based on the state of the cryptocurrency market, president and liquidity cycles, peak season indicators should appear in the coming weeks. Meanwhile, investors can choose to predict this signal or pay attention to assets that have already shown strong performance based on the SCP sector. For the SCP sector, Solana ($SOL), Near Protocol ($NEAR), and Toncoin ($TON) are currently the three tokens that have the strongest relative strength against Bitcoin.

Tim’s Predictions: The Altcoin Market Is Rising

Another prominent analyst, Tim, agrees with Coutts’ bullish view on altcoins. Tim believes we are on the verge of an unprecedented altcoin season. According to the historically observed accumulation and breakdown phases, the market capitalization of altcoins is expected to rise from its current value of $1.156 trillion to as much as $4 trillion by 2025.

However, investors should exercise caution. While the potential benefits are significant, the timing of entry is crucial. Analyzing the SCP sector’s momentum and the Altseason Index will be critical in navigating this potentially lucrative yet complex investment landscape.

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