Market sentiment and capital flows
• Impact of Bitcoin Trend: When Bitcoin trend is stable or in a consolidation or small rise stage, funds will look for assets with higher returns, and altcoins may become an option. When Bitcoin rebounds or consolidates after a sharp rise, investors will take profits and transfer funds to altcoins.
• Overall market sentiment picks up: If market sentiment picks up in 2024, funds will overflow from Bitcoin and Ethereum and flow into altcoins, driving their explosion.
Technological development and innovative applications
• Breakthroughs in underlying technology: The development and upgrading of blockchain technology, such as the technological improvements of Ethereum, will improve the performance and reduce the cost of altcoins based on its network, thus attracting investors.
• Innovative application landing: When the projects that the altcoin relies on have actual innovative applications landing, such as Frogcoin in the Solana ecosystem, its value growth is supported by innovative applications such as artist auctions.
Industry cooperation and ecological development
• Cooperation with giants: When well-known companies and institutions cooperate with altcoin projects, it will greatly enhance their popularity and credibility. For example, the cooperation between investment banking giant JPMorgan Chase and Avalanche Blockchain has driven up the price of Avalanche Coin.
• Ecological improvement: The improvement of the altcoin project’s own ecosystem, including the growth of the developer community and the increase in the number of users, will enhance its value.
Changing regulatory environment
The chairman of the U.S. Securities and Exchange Commission is expected to step down in January 2025. The new government may take a more relaxed attitude towards cryptocurrencies, which will make the market full of expectations for the future regulatory environment and inject confidence into altcoins.
Impact of Bitcoin halving cycle
As the Bitcoin halving cycle approaches, market funds may be redistributed, and some investors will turn their attention to potential altcoins, such as Pepecoin, to push up their prices.
