Analysts are waiting for the altcoin season very soon

Growth in liquidity, improving regulation and a surge of onchain activity create favorable conditions for the start of altsyzone. This is stated in the Sygnum report for the third quarter, writes Cointelegraph.

In the first half of the year, international political tension and uncertainty in the financial strategy of the United States led to a mass sale of alternative coins.

“As the regulatory status of altcoin is clarified, capital can go to projects with real use and sustainable tokenomics. Perhaps this shift has already begun, as evidenced by some data, ”experts said.

They indicated a decrease in bitcoin dominance by 6% over the last month. The indicator deviated from the maximums of 2021. This hints at the growth of the interest of investors in relation to altcoin.

Bitcoin and Ethereum will grow

At the same time, Bitcoin’s bull trend persists, analysts noted. The imbalance of demand and demand continues to push digital gold to the new historical maximums – on July 14, cryptocurrency broke through a record $ 123,000.

Positive dynamics is facilitated by the influx of capital in ETF. The cost of assets under the control of crypto funds has already exceeded $ 160 billion. Over the last quarter, these structures have accumulated over 110,000 BTC.

Ethereum demonstrates similar dynamics:

  • ETH balances on exchanges are reduced;
  • ETF based on the ether fixes record tributaries.

Experts emphasized that Ethereum “finally overcame the long -term descending trend.” This was facilitated by the update of Pectra and a sharp increase in demand from the institutions. Sharplink plans to invest $ 1 billion in ETH.

At the same time, giants with Wall Street like Bny Mellon and Societe Generale are increasingly interested in stablecoins based on the network of the second cryptocurrency capitalization network.

DEFI and DEX records

Sygnum analysts also emphasized the success of the decentralized finance sector. According to them, in the last quarter of DEX they captured 30% of the total expense trade in cryptocurrencies. BNB Chain’s leadership intercepted Pancakeswap, and Pump.fun overtook the Raydium on SOLANA Pumpswap.

The volume of Defi -lending reached a historical maximum of $ 70 billion. Currently, 30% of Ethereum liquid proposal are also blocked in stakeing. Experts called these factors the “main beneficiaries of the rally” in the crypto.

However, they warned: the current excitement around altcoins can provoke a repetition of the 2021 scenario. Then the correction followed the sharp growth. Mem-coin is particularly dangerous-projects without fundamental value, Sygnum said.

Recall, on July 22, the author of Cryptoquant and the analyst Timo Oinonen indicated at the end of the era of “mass altsyzons”. According to him, the next growth cycle will not affect the entire market – only a few projects will overtake bitcoin in terms of profitability.

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Source: Cryptocurrency

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