AltcoinMomentum reflects the current trends and sentiments in the altcoin market, focusing on the values of indicators such as price, trading volumes and token popularity, particularly in the context of the competition between altcoins and Bitcoin. Analysis of this index allows you to determine which assets demonstrate positive dynamics and may be promising for investors.
The prospects for altcoins in 2024 largely depend on the following factors:
1. Development of Ethereum and its L2-solutions: Layer 2 networks (Arbitrum, Optimism, etc.) strengthen their presence, thanks to the reduction of transaction costs and the increase of processing speed. This can stimulate the growth of their use and value【8】【10】.
2. Institutional participation: The approval of ETFs for Bitcoin and Ethereum, as well as the possible expansion of these products to altcoins, is helping to attract capital, but the focus is mainly on large caps such as SOL, XRP or AVAX【9】.
3. Modular blockchains and niche networks: Competition among platforms like Solana or Celestia pushes blockchains to create innovative solutions focused on specific sectors, such as DeFi or NFT【10】.
At the same time, the market faces risks, in particular due to the high FDV (Fully Diluted Valuation) for new projects, limited liquidity and reduced activity on the L1-competitor Ethereum platform【9】【10】.
So AltcoinMomentum can serve as a useful tool for identifying short-term trends, but for strategic analysis it is important to consider the fundamental factors and dynamics of the market as a whole.