BTC has significantly dropped, while ETH has risen, and ACT and PNUT have also stabilized, seemingly indicating the official start of altcoin season?
Does this rebound of altcoins mean the arrival of altcoin season?
Currently, this rebound appears to be more about capital rotation and catch-up market, rather than a true trend-driven altcoin season. Bitcoin is consolidating around $100,000, meme coins are in a correction period, and some funds have shifted towards the altcoin sector, leading to a certain rebound. Meanwhile, some obscure old coins have seen significant increases, primarily because these coins have concentrated institutional holdings, making it relatively easy to drive up prices.
From a fundamental perspective, activities and demand on the ETH chain have not changed significantly, gas fees remain at historical lows, and inflationary pressures persist. Additionally, the issues of high FDV and continuous unlocking of altcoins remain unresolved. Therefore, the essence of this rebound is still a catch-up market, lacking adequate support to drive a comprehensive bull market.
It should be noted that while the current rebound of the altcoin sector has certain space, one should seize the opportunity to take profits in a timely manner. Unless there is a significant application innovation in the Ethereum ecosystem or the altcoin ecosystem produces new innovative sectors, with funds refocusing, the market may not enter a trend-driven bull market. Otherwise, this wave of market activity is more like a trading opportunity during a rebound, rather than the starting point for long-term positioning.
Attention can be focused on the rebound potential of Ethereum ecological tokens. As one of the two major assets covered by the US ETF, along with Bitcoin, Ethereum still firmly holds the title of 'King of Ecology'. Previously affected by FUD, its ecological tokens experienced significant declines, but with the market warming up, the rebound space is worth looking forward to. For example:
Staking Field: LDO continues to be a leading project, benefiting from the growth trend of Ethereum staking.
Layer 2 Network: Representative tokens such as OP, ZK, STRK, and ARB have good ecological development prospects.
Domain Services: ENS, as an important application for on-chain identification, remains a focus.
Other sectors worth paying attention to:
The MEME sector, including DOGE, SHIB, PEPE, FLOKI, BONK, and PNUT, remains a focal point in the market, and could see new rebound opportunities under the rotation of funds.
AI Sector: Tokens focusing on artificial intelligence themes, such as AGIX, WLD, FET, AI, and NMR, benefit from the rapid development and sustained popularity of the AI industry.
Public Chain Sector: Leading public chains such as ETH, BNB, SOL, MATIC, FTM, ADA, AVAX, and ATOM continue to attract attention, with ecological development providing support for long-term value.
BTC Halving Sector: As the Bitcoin halving approaches, related coins such as BCH, BSV, ZEC, ZEN, and BTG are likely to attract market attention, creating thematic opportunities.
GameFi Sector: Projects like SAND, MANA, GALA, ENJ, RON, PIXEL, ACE, ILV, and MAGIC are expected to become popular areas pursued by funds with the revival of the gaming sector.
The performance of these sectors will be influenced by market capital flow and hot rotations, and it is recommended to focus on the rebound potential of quality projects while grasping the market rhythm.
Today's Quality Coin Recommendations
1. FTM
FTM: A typical strong coin with multiple potentials.
Fantom is an innovative blockchain platform focused on DeFi, enterprise solutions, and practical applications, with its unique Lachesis consensus mechanism providing a significant advantage. This mechanism not only ensures fast transaction confirmations but also supports high throughput, significantly distinguishing it from traditional blockchain platforms.
As a user-friendly and efficient ecosystem, Fantom has been widely adopted in the DeFi field and other application scenarios, becoming a project of significant industry attention. Whether in technical advantages or ecological development, FTM has demonstrated strong market competitiveness.
2. SUI
SUI: A new public chain highly regarded by Wall Street institutions.
SUI is a highly anticipated new public chain with solid technology and enormous market potential. Its unique Move programming language provides developers with powerful tools, gaining widespread recognition and a good technical reputation. From a technical perspective, SUI's performance significantly outperforms APT, with SUI being more competitive in terms of ecological user experience and developer community evaluation.
Some analysts believe that the current SUI shares many similarities with early Solana, being in a rapidly developing stage with abundant opportunities. With the backing of ecological construction, technical advantages, and institutional support, SUI is expected to become a leader among the next generation of public chains, worthy of continuous attention.
3. GRASS
GRASS: The data layer cornerstone of the AI revolution.
GRASS is an innovative decentralized network dedicated to providing strong 'data layer' support for artificial intelligence (AI) models.
As an important infrastructure driving the AI revolution, GRASS transforms the internet into a shared resource pool for AI companies. At the same time, it empowers individual users to create revenue from data that is often underutilized, opening up new possibilities for data value. GRASS's unique model is accelerating collaboration and innovation in the field of artificial intelligence, helping to build a more efficient intelligent future.
