Has the Altcoin season ended or is a bullish trend forming?

While the crypto market is showing interesting signs, with notable events such as Solana nearing the launch of a staking ETF and Robinhood integrating Arbitrum, both of these altcoins have seen almost no significant volatility. Contrary to the expectations of many investors, these events have not created strong shocks in the values of SOL and ARB. This has led many analysts to express concerns about the current state of the altcoin market. So, has the altcoin season truly stalled, or is a skeptical bullish trend gradually forming?

Has the Altcoin season ended or is a skeptical bullish trend forming?

When it comes to the movement of the altcoin market, some analysts suggest that the lack of strong reactions to price stimuli may be a sign of a cooling trend. Especially in the case of Solana, the price of SOL has eased the hype after news about the potential launch of a Solana staking ETF was announced. Meanwhile, Arbitrum has not seen significant volatility despite being integrated into the Robinhood platform.

The recent price movements of SOL and ARB are clear evidence of the instability in the altcoin market. News that seemed to be a driving force for these coins did not generate a strong reaction as in previous cycles. This raises the question of whether this altcoin season has come to an end.

The performance of SOL/USDT, ARB/USDT | Source: TradingViewOne of the explanations for this phenomenon comes from DeFi Ignas, co-founder of Pink Brains, who believes that the current altcoin market is witnessing a shift from speculation to actual value. In one of his articles, Ignas shares:

"We have turned the old criticism that 'blockchain, not cryptocurrency' into a reality. Blockchain is truly useful, but the tokens have not really held value. At least when they do not provide a clear value proposition."

Ignas believes that the disappointment in the altcoin market may stem from the overwhelming presence of too many low-value tokens flooding the market. This is in stark contrast to Bitcoin, whose product is the coin itself – a clearly valuable and liquid asset. The altcoin market, on the other hand, has now become a place filled with ambiguous tokens in terms of value, causing investors to feel disheartened and gradually lose faith in the true potential of this market.

The speculative spirit has gradually faded as the market is flooded with tokens inflated in value, with charts showing only downtrends, and dreams of getting rich from meme coins ultimately end in collapse. When you keep incurring losses, you will give up. You will no longer believe in the possibility of a new altcoin market's existence.

The next bullish Altcoin wave: Quality is more important than quantity

Despite the many doubts, DeFi Ignas does not believe that this is a sign of the end of the altcoin market. He believes that a bullish trend will emerge, but this time it will not be like the previous ones. Instead, he expects a new wave of altcoins, driven by a group of high-quality tokens with real value and long-term potential.

"That's right, I believe that a strong bullish trend will come for a select group of altcoins, those coins that have: excellent product-market fit (PMF), accumulated Lindy effect, the ability to generate revenue and value for the token, along with acceptance from traditional finance (TradFi)... To create this new wave, all we need to do is simply focus on a few key tokens and start believing in their potential."

However, not everyone agrees with Ignas's viewpoint. Mert Helius, a DeFi researcher and CEO of Helius Labs, has pointed out that the growing attraction to tokenized stocks (tokenized stocks) may fragment liquidity in the crypto market. This, combined with the weak fundamentals of altcoins, could make the next bullish phase difficult to occur like previous growth cycles.

Some analysts are concerned that tokenized stocks could account for a large portion of the value created by blockchain technology. This could diminish the potential of altcoins in the future, as TradFi increasingly dominates the adoption and exploitation of blockchain technology.

Although there are many opposing views on the direction of the altcoin market, it is important to recognize that if the altcoin season returns, it may be very different from previous cycles. No longer will there be rapid, hype-filled, speculative price increases, but instead, the new altcoin season may involve less hype, focusing on truly valuable projects with a clear connection between the use of the protocol and token value.

If the next bullish altcoin wave actually occurs, it may not only depend on the number of tokens but also on the quality and real-world applicability. And, as Ignas has shared, simply focusing on a few tokens with real value will restore confidence and drive a stable and sustainable growth surge in the altcoin market.

Annie