Can altcoins still be resolved?
Currently, Bitcoin's dominance remains around 58-60%, and the Altseason index is only in the range of 30-40, with market funds still concentrated on BTC and a few strong sectors.
From a macro perspective, the fastest structural resolution window for altcoins may appear between late August and mid-September, which will first drive a few high beta sectors, such as the ETH ecosystem (ETH, native L2, LST/LRT, and re-staking), high-performance L1 ecosystem trading infrastructure, and leading Memes.
Altcoins that can be resolved either directly benefit from institutional allocation and ETF fund inflows, or have strong narratives, quick implementations, and are more easily speculated by leveraged funds.
For a comprehensive altcoin season, the market needs to meet at least three triggering conditions:
BTC's dominance must fall below 58% and maintain a downward trend, ETH ETFs must see continuous net inflows, and the market capitalization of stablecoins must continue to rise, which may bring back a true large-scale altcoin season reminiscent of 2021.
Additionally, the biggest opportunity in this altcoin season may likely be in the ETH sector, which has one more ETF as a source of funds than other sectors, and LST/LRT & re-staking projects, along with lending, can create secondary and tertiary amplification effects from ETF inflows.
If one can find projects that have both ETH re-staking returns and participate in RWA-related concepts, in my view, they are the highest multiplying targets.
