Ethereum (ETH) breaks through the historical high of 4800 USD, OKB surges, do altcoins still have a chance?
From the current market performance, Ethereum breaking historical highs and the strong performance of platform coins like OKB reflect that the cryptocurrency market is generally in an active bull market cycle. In such an environment, altcoins often have rotation opportunities for the following main reasons:
The logic behind the opportunities for altcoins
- Market fund rotation patterns: In a bull market, funds often first concentrate on mainstream coins like Bitcoin and Ethereum, driving their prices up. When the mainstream coins reach a certain level of increase, and market sentiment is fully ignited, some funds will flow into altcoins with relatively low valuations and untapped potential, seeking higher returns, which in turn drives up the altcoins.
- Sector linkage effect: The strong performance of Ethereum may drive related altcoins within its ecosystem (such as tokens from Ethereum-based DeFi and NFT projects), and the explosion of platform coins may also radiate to other altcoins on different platforms, forming sector rotations.
Risks to be aware of
- Obvious differentiation: Not all altcoins will rise; many lack practical application scenarios and value support, and may just be following trends temporarily, even facing speculation and zero-risk.
- Higher volatility: The price fluctuations of altcoins are usually much greater than those of mainstream coins, rising quickly but also potentially falling more sharply, requiring higher risk tolerance and judgment from investors.
Overall, in a bull market, altcoins have the opportunity for rotation and explosion, but careful selection based on project fundamentals (such as technical strength, application scenarios, community activity, etc.) is necessary to avoid blindly following trends, while also managing risk effectively.