Institutional interest in ETH drives the altseason
Duong said the current momentum is being driven by digital asset treasuries and narratives involving stablecoins, with the divergence between the altseason indices and the total market capitalization of altcoins “reflecting the growing institutional interest in Ethereum,” before concluding:
“With the market capitalization of altcoins rising and the Altseason Index showing early positive signs, we believe the conditions are being set for a possible rotation to a more mature altseason as we approach September.”
“Three key conditions need to align for an altseason to consolidate: a favorable macroeconomic backdrop, a decrease in BTC dominance, and a strong new narrative,” said Joanna Liang, co-founder of the Singapore-based venture capital firm Jsquare, to Cointelegraph.
“Previous cycles were driven by clear catalysts: ICOs in 2017–2018, Layer-1s in 2018–2019, and DeFi/NFTs in 2021–2022,” she said before adding:
“In this cycle, the market is still waiting for a convincing signal from the primary market that can attract significant new capital and really ignite an altseason.”
