Altseason Is a Relic of the Past, Says Trading Firm Executive
A DWF Labs executive predicts the end of traditional altcoin cycles, citing increased competition, limited capital, and the rise of Bitcoin ETFs.Summary
According to Andrei Grachev, Managing Partner of DWF Labs, the traditional “altseason” – broad market rallies for altcoins – is becoming a thing of the past. He attributes this shift to several factors, including an overwhelming number of tokens competing for limited investment capital, a decrease in market participants, and the impact of crypto ETFs which are absorbing liquidity. Institutional investors are increasingly focusing on established assets like Bitcoin (BTC) and Ether (ETH), as well as tokenized real-world assets (RWAs), further diverting attention from altcoins. The market now features over 37.8 million tokens, leading to diluted liquidity and a situation where only strong projects can survive. Grachev predicts shorter investment cycles, more volatile rotations between sectors, and a move away from broad altcoin rallies towards more selective investments. Matt Hougan of Bitwise agrees, noting institutional interest in yield-bearing assets. Data from CryptoQuant shows a significant outflow of over $209 billion from the altcoin market in the last 13 months, while Bitcoin ETFs continue to see strong inflows.
(Source：Cointelegraph)