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Altcoins in 2025: Mixed Predictions from CryptoQuant and Citi Analysts
The cryptocurrency market is bracing for a potential shift in 2025, with differing opinions from prominent analysts. CryptoQuant CEO Ki Young Ju recently expressed skepticism about the altcoin market, while Citi analysts foresee a brighter future for the sector.
CryptoQuant’s Ki Young Ju: A Zero-Sum Game for Altcoins
Ju tweeted that the altcoin market is in a “zero-sum PvP game,” where gains are largely internal and dependent on the losses of others. This is reminiscent of a competitive game where the overall money pool remains stagnant. Ju pointed out that Bitcoin’s market value has doubled, while the total market capitalization of altcoins remains below past all-time highs.
Altcoin markets are currently a zero-sum PvP game. While Bitcoin has doubled its market cap, the alt market cap is still below its previous ATH, rotating among themselves without fresh capital inflows. Only a few alts with strong use cases and narratives will survive.
Ju believes that only a few altcoins with robust use cases and narratives will be able to survive in the current market. This suggests that investors should focus on fundamental analysis and due diligence when selecting altcoins to invest in.
Citi Analysts: A Brighter Future for Altcoins
Citi analysts, on the other hand, predict a more positive outlook for altcoins in 2025. They believe that the sector could be in for a significant surge, with Ethereum being a prime target for rotation within the market. Other altcoins, such as Ripple’s XRP, Solana, and Tron, are also expected to see growth.
The analysts point to Bitcoin’s 116% surge in 2024, driven by factors such as the approval of spot BTC ETFs and the halving event, as a catalyst for the upcoming “altcoin season.” They also note that Ethereum has gained 59% in a month, indicating a potential trend reversal.
Investor Appetite and Emerging Narratives
A look at crypto fundraising data reveals an increasing appetite from investors for early-stage projects. According to Pitchbook, crypto fundraising in Q1 2024 surged to $2.4 billion across 518 deals, reflecting a 40.3% increase in invested capital and a 44.7% uptick in deal volume compared to the previous quarter.
Emerging narratives, such as AI, are also attracting significant funding. This trend is expected to continue in 2025, with investments in well-positioned projects and categories likely to surge.
For investors, the key takeaways are to focus on fundamental analysis, due diligence, and emerging narratives when selecting altcoins to invest in. With the potential for a wider “altcoin season” in 2025, it’s essential to stay informed and adapt to changing market trends.
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