Reflexivity Research co-founder Will Clemente argues that altcoins need to rally to create a healthy market environment.

Clemente stated that venture capital firms are investing less in altcoins, adding that projects will have difficulty raising capital if the altcoin rally does not occur. According to the analyst, altcoins have entered a critical phase.

Cryptocurrency projects need to have a significant price rally to continue receiving venture capital, according to cryptocurrency analyst Will Clemente.

Speaking to his followers on X on September 12, Clemente said: “Unless altcoins see a significant bull market, there will be fewer crypto projects funded, which will prevent projects from growing in the altcoin market.”

The analyst claims that altcoins are not bullish, arguing that new projects raising funds will disrupt the supply-demand balance and create frustration.

On-chain data platform#CoinMarketCapreports that there are over 8,000 cryptocurrencies on the market and it is difficult to determine the exact number of tokens available.

Clemente, who stated that more investments are being made in high-risk, high-reward assets, explained that altcoins are lagging in performance.

Glassnode chief analyst James Check reports that new cryptocurrency investors are rushing to buy speculative assets too early. The analyst argues that this investor behavior is hindering the altcoin's price rally.

On the other hand, MN Trading founder Michael van de Poppe remains bullish on altcoins. “Some altcoins are doing very well,” the analyst said, concluding his bullish outlook by saying, “We are starting to see some momentum.”

Van de Poppe believes that the altcoin bull run will begin in the coming months.

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