Bitcoin is no longer fighting alone; market funds are gradually flowing towards mainstream altcoins.
According to data from Quantify Crypto, in the past 24 hours, among the top 200 cryptocurrencies by market capitalization, as many as 185 tokens have seen increases, with only 15 tokens recording declines. Among them, the average increase for the top 100 tokens exceeds 8%. Specifically, ETH broke through 3400 USDT, with a 24-hour increase of 9.7%; SOL broke through 260 USDT, setting a new historical high; the OP and ARB on Ethereum's second-layer network both saw increases of over 15%. On social media, many people exclaimed, 'The altcoin season has finally begun!'
Has the altcoin season arrived?
Why are altcoins rising?
The trading volume of well-known on-chain memes has decreased, and community discussion has diminished.
Recently, Bitcoin's price has continued to break new highs, but altcoins have not followed suit and have instead shown weakness, especially those VC tokens facing massive unlocks, leading to a pessimistic outlook for altcoins in this bull market.
As a result, the market is gradually shifting towards launching fairer Meme coin sectors, with significant funds flowing to on-chain PVP games. Although former mainstream altcoins have a considerable market cap, their actual liquidity is far less than some newly emerging Meme projects. Currently, the daily trading volume of the top 100 tokens is even surpassed by the newly risen CHILL GUY.
However, the high-intensity PVP characteristics of the Meme coin market have also made some investors cautious, and the gradual return of funds to altcoins has become an inevitable trend. This has led to a rotation of funds between Meme coins and altcoins. A significant reason for the recent rise in altcoins is the consensus on the popularity of on-chain Meme coins.
Specifically:
Meme coin trading volume ranks first: Meme coins such as ai16z, RIF, and ELIZA have seen a significant decrease in their trading volume. According to GMGN data, trading volumes of most popular Meme coins have been halved.
Community enthusiasm segmentation: The discussion and sentiment within the Meme community have also decreased. Many people who discussed which Meme coin to invest in today are now more focused on how to survive the downturn and wait for the next wave of market activity.
The inspiration from the Meme sector has injected new vitality into the altcoin market and provided support for the upcoming capital rotation.
SEC Chairman Gary Gensler is about to resign, and altcoins are welcoming a celebration.
Since the approval of Bitcoin and Ethereum spot ETFs, the crypto market has continued to rise, and investors' attention has gradually shifted to the next cryptocurrencies that might enter the mainstream spotlight.
Recently, Bloomberg senior ETF analyst James Seyffart disclosed on social media that 'Cboe has submitted applications for four Solana (SOL) spot ETFs to the U.S. SEC, with issuers including VanEck, 21 Shares, Canary Capital, and Bitwise. If the SEC does not reject them, the final scheduled date for these applications will be early next August.'
Applications for spot ETFs typically require the submission of two types of documents: S-1 and 19b-4. The submitted S-1 document is just a preliminary filing for demand listing, while the complexity of the review process is concentrated in the subsequent 19b-4, indicating that the SOL spot ETF application is still in the early stages.
However, SEC Chairman Gary Gensler announced on the X platform (formerly Twitter) that he will officially resign on January 20 next year. This change brings new dynamics to the review of the SOL spot ETF. The new SEC chairman may wish to avoid further delays in the review process, similar to the prolonged delays faced by Bitcoin and Ethereum spot ETFs until their final use dates.
At the same time, Gary's impending departure also provides a breather for altcoins that have long faced regulatory pressure. For instance, Ripple, which has had long-standing legal disputes with the SEC, saw its token XRP surge by 30% in a single day after the news broke.
Under the dual impetus of a relaxed regulatory environment and the SOL spot ETF application, the general rise of altcoins is quite logical. This dynamic not only provides positive expectations for SOL but also injects new vitality into the entire crypto market.
Can altcoins continue to rise?
Whether the rise of altcoins can be sustained still requires observation and verification from multiple dimensions.
Moreover, based on historical experience, the altcoin market often experiences short-term heat-driven trends. However, whether it can truly maintain price increases depends on the long-term development capabilities of the projects and the alignment with the overall market environment. Although there are calls for an 'altcoin season' in the current market, if there are no new technological breakthroughs, practical applications, or ecological support, this wave of market activity may be more of a game based on temporary capital rotation rather than a trend-driven increase.
Therefore, both institutions and individual investors need to remain vigilant in the face of this round of altcoin activity. On one hand, they should pay attention to changes in the flow of funds in the market, such as key indicators like on-chain token transfer data; on the other hand, they also need to guard against the risk of adjustments after short-term increases, especially as the funding movements of leading projects may become important indicators for future market trends.
At present, the 'altcoin season' remains a battleground of opportunities and risks, and investors should remain calm.
