Altcoins such as Dogecoin and XRP see a rise in value, coinciding with a dip in Bitcoin's overall market dominance.
According to Gerry O'Shea, head of global markets insights at Hashdex, the upcoming altcoin season may not be as significant as previous ones due to increased institutional adoption and structural market changes.
In a shift from past altcoin surges driven by speculation, this cycle is expected to be more restrained and guided by regulatory clarity and institutional capital focusing on scalable smart contract platforms and stablecoin ecosystems.
Decline in Bitcoin Dominance
As Bitcoin prices cool and its market dominance dips—recently to a 12-day low of 57.8%—altcoins like Dogecoin, XRP, Ethereum, and Solana gain investor interest. O'Shea predicts that this decline in Bitcoin dominance will persist as institutional investors balance their portfolios.
Focus on Utility-Driven Altcoins
This altcoin season is expected to favour altcoins with strong fundamentals and real-world utility rather than speculative assets like NFTs or meme coins. Ethereum, a smart contract platform that provides infrastructure for stablecoins, is demonstrating utility, according to O'Shea, which could contribute to Bitcoin’s falling dominance.
Regulatory Progress and Institutional Capital
The market is influenced by regulatory progress, particularly in the U.S., and the passage of stablecoin legislation. O'Shea suggests that the upcoming altcoin season may focus on projects that prioritize utility due to this regulatory progress.
A More Stable Altcoin Rally
This shift is reshaping market dynamics and contributing to a more stable and less speculative altcoin rally compared to previous hype-driven cycles. Nearly two in three participants in a Myriad Linea Markets prediction table predict that Ethereum will reach $5,000 by year's end, indicating a more measured approach to investing in altcoins.
Notable Price Movements
On Friday, Bitcoin hovered around $116,000, marking a 0.1% increase over the past day and a 96% increase over the past year. Ethereum's price eclipsed the $4,000 mark for the first time since December. XRP was trading around $3.29, a 7.5% increase over the past day, and Dogecoin was trading at $0.22, a 6.2% increase over the same period.
Institutional Crypto Firm's $9 Billion Bitcoin Sale
In recent weeks, the Bitcoin market has proven resilient despite institutional crypto firm Galaxy Digital executing a $9 billion Bitcoin sale on behalf of a single, Satoshi-era investor. During the company's second-quarter earnings call, Galaxy CEO Mike Novogratz remarked with relief that the sale took place as Bitcoin-buying firms like Strategy were hoovering up the asset.
In conclusion, the upcoming altcoin season is predicted to be characterised by a decline in Bitcoin dominance, increased investor preference for utility-driven altcoins, a market influenced by regulatory progress, a more stable and less speculative altcoin rally, and a focus on projects that prioritize utility.
- The upcoming altcoin season, according to Gerry O'Shea, may see a decline in Bitcoin's dominance due to increased institutional adoption and market changes.
- Institutions are expected to balance their portfolios, leading to a decrease in Bitcoin's market dominance, with altcoins like Dogecoin, XRP, Ethereum, and Solana gaining investor interest.
- This altcoin season is predicted to favor altcoins with strong fundamentals and real-world utility over speculative assets such as NFTs or meme coins.
- Ethereum, a smart contract platform that provides infrastructure for stablecoins, is demonstrating utility, which could contribute to Bitcoin’s falling dominance.
- Regulatory progress, particularly in the U.S., and the passage of stablecoin legislation are influencing the market, with the upcoming altcoin season focusing on projects that prioritize utility.
- The market is shifting towards a more stable and less speculative altcoin rally compared to previous hype-driven cycles, with nearly two in three participants predicting that Ethereum will reach $5,000 by year's end.
- Despite institutional crypto firm Galaxy Digital executing a $9 billion Bitcoin sale, the Bitcoin market has proven resilient, as Bitcoin-buying firms like Strategy were hoovering up the asset.
- The crypto market is reliant on technology such as blockchain, smart contracts, and decentralized finance (DeFi) for growth and stability.
- The growth of Decentralized Autonomous Organizations (DAOs), non-fungible tokens (NFTs), and the development of stablecoins like USDT and DAI are testimony to the transformative potential of the cryptocurrency market in finance and technology.
