Analyst Jamie Coutts predicts that altcoins may experience one final surge before a sustained price decline, but this rally will only benefit projects with significant network activity and real-world utility. 36 million altcoins exist in total according to Cointelegraph, however Ethereum remains dominant, holding over 55% of the total value locked (TVL). Coutts emphasized the importance of tracking network activity as a key indicator for trading in the crypto market. He expects to see a positive trend begin in June, possibly coinciding with Bitcoin reaching all-time highs.
Recent declines in blockchain network activity across the board, including notable falls on the Solana (SOL) network, have contributed to a broader market downturn, further highlighting the need for robust networks and utility.
While key indicators like the Altcoin Speculation Index and the Altcoin Season Index suggest a lack of an upcoming altcoin season, other experts, such as CryptoQuant CEO Ki Young Yu, argue that trading volume is now more critical than Bitcoin dominance for predicting altcoins’ performance.
Remember, this article offers insights into market trends but does not constitute financial advice. Investors should conduct their own research before making any investment decisions.