The performance of most second-tier altcoins often follows the trend of ETH. So, who does ETH follow?
Since November, BTC has led the market. Although ETH also started to rise, its increase was relatively small, failing to generate enough FOMO sentiment, resulting in most second-tier altcoins following ETH's fluctuations. In fact, this situation has remained unchanged from the bull market of 2020-2021 to now.
For example, from November 21 to December, ETH rose from about $3050 to over $4000, and during this period, most second-tier altcoins also rose in sync. Entering 2025, on January 1, ETH increased from around $3300 to $3700. Noticing several representative projects in each track during this process, you will find that most have seen some increase.
From my observation, new L1 projects, including Ethereum's L2s (such as ARB, OP), as well as some currently less popular GameFi tracks, have shown some upward performance during this period. So this could be considered a small altcoin season. However, the current market momentum is relatively insufficient, coupled with the retreat of BTC sentiment, ETH is also affected, which makes the performance of those less liquid second-tier altcoins even weaker.
Therefore, to welcome the market for second-tier altcoins, we still need to wait for the recovery of BTC to drive the market's FOMO sentiment. The momentum of ETH also needs to be strong enough to significantly boost prices. However, it is worth noting that since the U.S. election in November, the trend of ETH has indeed been gradually recovering, and ETH's ETF capital inflow performance has also been very good, showing significant improvement compared to the situation before October 2024.
The performance of the upcoming market may need to wait until the new president and the new SEC chairman take office, after which market sentiment may change. Meanwhile, ETH's spot ETF staking and $BTC's leadership will also bring some market fluctuations in the future. Additionally, the upgrade of ETH in Q1 2025 may become a hot topic for speculation. Overall, as long as the inflow of funds into ETH continues to increase, the ETF capital inflow during those days on January 1 has already proven this.
Therefore, if ETH can maintain strong momentum, we can still expect a healthy second-tier altcoin season. I hope everyone can seize this opportunity!
Today's article ends here, welcome to come to the homepage and play together~
Investment carries risks, and the above content is purely personal sharing and does not constitute investment advice!