Why is the 2024 major altcoin boom still not coming?

Why is the major altcoin boom still not coming?

Well-known financial analyst Murad Mahmudov firmly believes that the major altcoin boom is not imminent, and the root cause is that the excess savings accumulated by American households are constantly decreasing.

According to the latest data from the Federal Reserve Bank of San Francisco, Americans' savings have been exhausted.

From March 2020 to August 2021, savings surged due to a sharp drop in consumer spending.

Economists at the San Francisco Fed noted that excess savings peaked in August 2021, exceeding a staggering $2.1 trillion.

However, although most of these savings are now gone, reports indicate that a strong labor market may maintain consumption levels.

But it is worth mentioning that the latest financial reports of large companies such as Amazon show that consumers are becoming frugal.

Considering that Americans have become more cautious in spending than in 2021, Mahmudov believes that they are unlikely to splurge cash on riskier alternative cryptocurrencies.

“The best you can expect is the occasional hot coin of the month that sees a brief surge in crypto-native PvP funding,” he said.

The analyst also pointed out that the oversupply of altcoins is a problem.

“Altcoins are growing in both number and fully diluted market cap as new tokens are issued,” Mahmudov added.

When comparing the current market cycle to 2017, the analyst noted that the market was much smaller back then, so the amount of funding required to achieve significant growth was also less. In addition, it was more difficult to create new tokens back then.

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