Many people ask if altcoins can recover? I mentioned this a few days ago and will analyze it for you one last time.
Currently, Bitcoin's market dominance is still around 58–60%, and the Altseason index is only in the 30–40 range, with market funds still concentrated on BTC and a few strong sectors.
From a macro perspective, the fastest structural recovery window for altcoins may occur between late August and mid-September. This wave will first drive several high beta sectors, such as the ETH ecosystem, Ontology L2, LST/LRT and re-staking, high-performance L1 ecological trading infrastructure, and leading memes.
Altcoins that can recover will either directly benefit from institutional allocation and ETF fund inflows or have strong narratives, quick implementations, and leverage that is easier to speculate on.
For a comprehensive altcoin season, the market must at least meet three triggering conditions:
BTC dominance must fall below 58% and maintain a downward trend, ETH ETF must experience continuous net inflows, and the market cap of stablecoins must continue to rise to potentially bring back a true large altcoin season like in 2021.
Additionally, the biggest opportunity in this round of altcoin season is likely the ETH sector, as it has one more ETF as a funding entry compared to others, and LST/LRT & re-staking projects, along with lending, can create a second and third amplification effect for the inflow of ETF funds.
If one can find projects that have both ETH re-staking yields and are related to RWA concepts, in my opinion, they are the highest multiplier targets.
