Awakening of the Altcoins

Not only could Ethereum accelerate the recovery it has been experiencing in recent months after a long period of crisis in its price. The outlook is also favorable for alternative cryptocurrencies, the so-called altcoins.

The historical series supports its possible resurgence. To anticipate the behavior of the crypto market, it is key to understand its past dynamics. Since its inception, Bitcoin has followed a very defined cyclical pattern, marked by the phenomenon known as halving, which halves the issuance of new bitcoins every four years.

In previous cycles, "the year following the halving has been associated with significant increases. Bitcoin, as the main gateway to the crypto ecosystem, is the first to react and attract capital. Once its growth moderates, investors begin to diversify into other assets, with Ethereum being the next beneficiary for being the most established platform for smart contracts. Subsequently, attention tends to shift to other altcoins with attractive technological proposals or narratives.

However, the massive entry of institutional investors "is transforming the structure of the market." According to the head of Renta 4 Digital Assets, "we are witnessing a paradigm shift." Smaller projects with a more speculative profile are struggling to attract large investments, and "only projects with solid fundamentals, real utility, and institutional adoption are capturing attention."