The cryptocurrency market experienced a turbulent week, swinging between sharp pullbacks and brief rebounds. After Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Friday, Bitcoin rebounded significantly, skyrocketing from $110,000 to nearly $117,000 within hours. Ethereum also hit a historical high of $4,900, grabbing headlines across major media outlets. However, just as market momentum appeared, it cooled again, leaving speculation about the next move.
Rotation signal: From Bitcoin to altcoins
A striking trend is that Bitcoin's dominance is declining. Currently, Bitcoin's dominance hovers around 57%, and this decline suggests that capital is shifting towards altcoins. This pattern is similar to early bull market cycles, where Bitcoin rises first, then stagnates, and finally altcoins take the lead.
Historically, August has been a relatively slow month for the cryptocurrency market. In 2021, growth momentum did not resume until the end of September.
Opinion: Which altcoins have the most potential?
The decline in Bitcoin's dominance, coupled with Ethereum's breakthroughs, suggests that altcoins may be on the verge of their golden era. If history repeats itself, the coming weeks might see liquidity flowing into a broader range of projects.
In a recent interview, Lennaert Snyder outlined where he sees the biggest long-term opportunities beyond Bitcoin and Ethereum. He emphasized Layer-1 blockchains with thriving ecosystems and Ethereum Layer-2 networks that enhance scalability.
Arbitrum and Optimism are two Ethereum Layer-2 projects expected to achieve lasting success, with Arbitrum becoming his top choice due to its developer activity and adoption rate.
"I also believe that the L2 layer of ETH will continue to play an important role in Ethereum's scalability. For this reason, I consider Arbitrum and Optimism to be promising long-term choices, with ARB being my top pick," he stated.
Regarding Layer-1, Snyder pointed out that projects like Solana (SOL), Sui (SUI), Tron (TRX), and Injective (INJ) have solid fundamentals. He believes each project has unique advantages, particularly in the DeFi and stablecoin markets, which make them stand out for long-term accumulation.
