Liquidity in the cryptocurrency market continues, a strong signal that the altcoin season has begun.
Some market commentators continue to express positive sentiment, predicting that the altcoin market will reach a market cap of $1.4 trillion by the first quarter of 2025. These predictions show that altcoins have significant potential for investors.
Recently, it was reported that whales accumulated a total of $1.6 billion worth of Bitcoin in 3 to 5 weeks. However, during this period, most individual investors tended to hold Tether and not actively participate in the market. This situation prevented individual investors from benefiting from the overall upward momentum of the market. Panic selling in the market is also one of the reasons for this trend.
Bitcoin's dominance has allowed alternative coins to grow in the market. This ratio was 60.55% in November and is currently at 56.90%. Historical data shows that similar declines in Bitcoin in April and November 2021 led to significant adjustments.
Interest in Ethereum is increasing
Ethereum is currently undervalued based on several fundamental indicators. A significant increase in institutional investment since November 5 has strengthened Ethereum's future potential. The flow of Ether's ETFs has exceeded that of Bitcoin, further solidifying its position in the market. With the start of the altcoin season, Ethereum has reached an important turning point.
On the other hand, Ethereum started this week with a 3% decline, after gaining over 10% in value last week, and began testing below $3600. However, there are expectations that Ethereum will quickly recover, supported by potential ETF inflows.
Solana's comeback preparation
Solana (SOL) has become the fourth largest cryptocurrency in recent months. The price increase of Ripple has negatively impacted Solana, but the trading volume of the cryptocurrency has grown by 39%, reaching $3 billion. Solana's strong ecosystem continues to attract investors.
Recently, Solana has surpassed Ethereum in performance metrics. Solana's popularity in the crypto market and its relevance to various use cases make it an important player in the cryptocurrency ecosystem.
Ripple continues to receive support
Ripple's native asset, XRP, peaked in 2024 due to Trump's election and the anticipated stablecoin project. After the latest surge, XRP rose to third place in market capitalization, surpassing Solana and USDT. This rise is largely supported by people's expectations that XRP will create a more positive atmosphere for cryptocurrency in U.S. politics.
Ripple plans to use XRP in cross-border payment solutions alongside stablecoins. These projects may play a significant role in the positive outcomes of lawsuits that could arise in 2025, leading to an increase in XRP prices.
Expectations for the altcoin market
Although the altcoin market is generally expected to enter a strong growth trend, the potential Ripple ETF launched by major financial institutions also supports this process.
Cryptocurrency experts predict that the altcoin market capitalization could reach $1.4 trillion by 2025. Meanwhile, there are predictions that Bitcoin could rise to $130,000. It is believed that the ETF industry will have a significant impact on this expansion process.