Bitcoin's market share has dropped below 60%, which is a key signal. The total market cap of cryptocurrencies has increased by 6.9%, but the increase excluding Bitcoin has reached 11.94%. What does this mean? It means that funds are flowing from Bitcoin to altcoins, and rotation has begun. DOGE surged by 8.68% to lead, XRP broke through $3.30, and SOL shot up to $180, with various altcoins making their moves.
The market share metric is very interesting. Bitcoin is like the blue chip of the crypto market; a high market share indicates conservative funding. Once it drops below 60%, it suggests that risk appetite has increased, and people are starting to look for more exciting targets. This kind of rotation is common in bull markets; Bitcoin rises first, stabilizes, and then funds overflow into altcoins.
Why now? First, the regulatory environment has improved, with the SEC's Project Crypto easing restrictions on altcoins. Second, institutional funds have entered, and market liquidity is ample. Most importantly, many altcoin projects are indeed making progress; DeFi, Layer 2, and cross-chain technologies have substantial advancements, no longer just purely speculative coins.
Investment strategies need to be adjusted. When Bitcoin dominated, holding a full position in Bitcoin was fine. Now that the altcoin season has arrived, it's time to start diversifying your layout. But you can't buy randomly; you need to choose projects with real value. Consider technological innovation, team strength, community activity, and ecological development; these fundamentals still need to be researched.
Several directions are worth paying attention to. DeFi is still the main line, with continuous innovation and ongoing growth in TVL. There is strong demand for Layer 2 solutions, and the congestion issue on Ethereum cannot be resolved in the short term. The concepts of gaming and the metaverse may make a comeback; they were hyped before, but technology is advancing, and new hits may appear at any time. AI-related crypto projects are also worth noting, as the combination of these two popular tracks may produce a chemical reaction.
Risk reminders are still necessary. Altcoins are more volatile, rising quickly and falling just as fast. The quality of projects varies, and the probability of hitting a landmine is not small. Don't go all in on any one project; diversification is key. Set stop-loss orders, control your positions, and don’t let FOMO emotions cloud your judgment. The altcoin season has indeed arrived, but that doesn’t mean you can make money just by buying with your eyes closed. Do your homework, invest rationally, and you can earn real profits in this market.
