CryptoQuant CEO and Citi analysts

The CEO of on-chain market analysis firm CryptoQuant predicts that altcoins may not be a game changer in 2025. However, analysts at Citi share a positive view. So what will 2025 be like for altcoins?

CryptoQuant CEO Ki Young Ju shares that the altcoin market is in a “zero-sum PvP game,” with returns largely endogenous and no new capital entering the market. This means that for one person to win in the current altcoin market, another must lose the full amount. This is reminiscent of a competitive game where the overall money pool does not actually increase.

Ju said on Jan. 10 that Bitcoin (BTC) market cap had doubled, the total market cap of altcoins was still below all-time highs, there were “only 3-5 altcoins” with a real use case, and solid narratives were the best option. He tweeted that he was. those who can survive.

Altcoin markets are currently a zero-sum PvP game.

During #Bitcoin has doubled its market cap, the sub-market cap is still below the previous ATH and are rotating among themselves with no new capital inflows.

Only a few altcoins with strong use cases and stories will survive. https://t.co/d5I0gyg14f pic.twitter.com/XArcEd9uKe

— Ki Young Ju (@ki_young_ju) January 9, 2025

The fate of the altcoin has a different outlook; But Citi analysts suggest the company could have a much brighter future. Ethereum (ETH), the only cryptocurrency besides BTC with permitted spot ETFs, is increasingly seen as a possible rotation target in the market, according to a January 8, 2025 report by Jinshi.

Citi analysts believe BTC’s rise in 2024 is something to behold; This event, which has increased by 116% over the year, includes important catalysts, including the approval of spot BTC ETFs, the halving event that took place in mid-April, and Donald Trump’s victory in the US elections. However, analysts say it is more likely that ‘altcoin season’ will begin in 2025 after a strong year for Bitcoin, with ETH up 59% in one month. Analysts also predict growth for Ripple (XRP), Solana (SOL) and Tron (TRX).

How will altcoins perform in 2025?

In terms of the future, 2025 could be a turning point with the rise of new narratives and increasing venture capital joining the next wave of growth. Crypto fundraising is surging for the third consecutive quarter as capital deployed nearly doubles and transaction volume nearly doubles, with $2.4 billion distributed in $518 rounds from January to March 2024, according to Pitchbook.

AI, for example, had the largest round of funding in the third quarter with $106 million at a pre-money valuation of $1.1 billion. These figures show that investors’ appetite for early-stage projects is increasing, especially in emerging sectors such as decentralized physical infrastructure networks. Early-stage deals experienced a 148.3% annual increase in median pre-money valuation. If these trends continue, they will see an increase in investments in specific projects and categories that are well-positioned to succeed over the long term, reinforcing both Ju’s focus on solid narratives and Citi’s prediction of a broader “altcoin season”.

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