Deep Trend TechFlow News, on September 13, according to Cointelegraph, Reflexivity Research co-founder Will Clemente said that the altcoin market needs to experience a significant rebound to continue to receive sufficient venture capital funding. Clemente noted that unless altcoins experience a “substantial bull run,” fewer crypto projects will receive funding, causing the overall altcoin market valuation to decline.

Clemente expects that funds may be dispersed considering the increase in market supply, and he is not optimistic about the altcoin market to achieve a significant rebound. Data shows that the dominance of the altcoin market after excluding the top ten cryptocurrencies has fallen by 23.10% in the past 6 months. Clemente explained: "Too much money has been invested in funds that are now significantly underperforming the benchmark, and these funds are mainly allocated to high-risk assets."

However, not all analysts are pessimistic. Michael van de Poppe, founder of MN Trading, believes that some altcoins are performing well and are beginning to show some momentum. He does not expect the market to deteriorate further in September, but may gradually move upward. Bitfinex analysts pointed out that despite Bitcoin's recent decline, altcoins remain relatively strong, indicating that investors may be adjusting their capital protection strategies during market uncertainty.