Cryptocurrency shift highlighted: Pantera Capital explains why September could be crucial for altcoins
In the dynamic world of cryptocurrencies, September is shaping up to be an exciting month. This prediction comes from Pantera Capital, a renowned institution in the crypto sphere, which suggests that we might be on the brink of a new altcoin season.
Ethereum, the technological epicentre of the altcoin universe, is consolidating its position. Its role as key infrastructure for tokenized assets and decentralized applications attracts institutional capital, further bolstering the altcoin market.
The growth of various altcoin networks suggests that the crypto ecosystem is entering a stage of maturity. Diversification is no longer a marginal option but a strategic necessity. Altcoins have historically rallied when Bitcoin stabilizes after an uptrend, and this pattern seems to be repeating now.
Bitcoin's dominance has declined from 65% in May to 57% in August, indicating a shift in focus towards altcoins. This is evident in the trading data from Binance, where altcoin trading volume has surged to 71% of total volume, suggesting traders are shifting focus from Bitcoin to altcoins following recent Bitcoin rallies and large BTC inflows to exchanges.
The market capitalization of altcoins has grown by more than 50% since July, reaching $1.4 trillion. This growth, combined with increasing altcoin capitalization, regulatory momentum, and growing institutional interest, points to a possible significant rally in altcoins in September.
However, it's important to note that the overall environment remains dynamic and subject to change. Projections point to a potential turning point in the crypto ecosystem in September, but interested parties are advised to stay attuned to market signals and regulatory movements.
Pantera Capital also highlights the role of staking and yield-generating protocols as tools for creating value in this new cycle, as well as the tokenization of real-world assets and interoperability between networks that are expanding the universe of possibilities for investors.
Altcoins offered 66% to market growth in the 2015-2018 cycle and 55% in the 2018-2021 cycle. Platforms like dYdX, Sui, and Avalanche are gaining attention for their ability to scale specific solutions, demonstrating that the market is rewarding utility and innovation.
Diversification is becoming a key strategy in the crypto ecosystem, with altcoins offering exposure to emerging sectors such as DeFi, NFTs, algorithmic stablecoins, and tokenization of physical assets. Regulatory bills such as GENIUS and CLARITY in the US are generating greater legal certainty for altcoins, further fostering growth in the sector.
If you're interested in learning more about the most important cryptocurrencies currently existing, our Academy offers a new course to help you understand this exciting world better. Whether you're a seasoned investor or just starting out, the altcoin season could present a unique opportunity to explore the diverse and innovative world of cryptocurrencies.
