The market for Ethereum can be described as crazy, with prices soaring and even breaking through key resistance levels, but altcoins have not kept up with this surge. Why is this happening? Where are the opportunities in the market next?
Ethereum skyrockets, when will altcoins start?
The core driving force behind this round of Ethereum's rise is the crazy influx of ETF funds. Yesterday, the net inflow into ETH ETF exceeded $700 million in a single day, with BlackRock contributing $500 million alone! This level of capital entering directly pushed up the price of ETH, but market funds are limited, and institutions and large holders currently prefer to position themselves in the more certain ETH rather than the riskier altcoins.
Moreover, ETH's key levels have not yet fully stabilized. The market needs to confirm ETH's strong trend before funds will overflow into altcoins. $3500 is a watershed; only after stabilizing will altcoins have the chance to start.
From Bitcoin to Ethereum, the biggest feature of this bull market is institutionalization. Bitcoin has been bought up by listed companies and ETFs, and now it's Ethereum's turn to become the new favorite of institutions. Looking back at this trend, most altcoins have lagged far behind ETH in terms of growth, with many still hovering at low levels.
This indicates that the market is still in the 'institution-led' phase, with retail investors and speculative funds not yet entering on a large scale. But this also means that the explosion of altcoins is just a matter of time. Once ETH stabilizes at key levels, funds will begin to look for more promising targets.
Where is the next wave of dividends? Keep an eye on this altcoin sector!
Since the market has entered an 'institution-led' mode, the logic of the future altcoin explosion will also change accordingly. The most likely candidates to take over the rise are those altcoins that have applied for ETFs!
Why?
After Bitcoin and Ethereum's ETFs are approved, funds will flood in, driving prices up. Other altcoins with ETF expectations will attract similar institutional funding. For example, previously SOL, ADA, and XRP had been rumored to potentially apply for ETFs. Once there is progress, these coins will become targets for funding.
In the crypto market, 'expected speculation' is often more important than actual implementation. For example, when the Bitcoin ETF had not yet been approved in 2023, BTC rose just because of market expectations. Similarly, those altcoins being discussed for possible ETF applications will be targeted by funds in advance, forming a strong upward expectation.
Currently, most altcoins are still at low levels, especially those with ETF expectations. Once market sentiment warms up, their upward potential will far exceed that of ETH. If SOL receives ETF news, it may replicate ETH's trend and even rise more steeply.
How to layout? Focus on these directions!
Coins like SOL, ADA, AVAX, and XRP have strong ecosystems and institutional backing, making them the most likely candidates for ETF applications.
If ETH ETF is successful, the next possible ETF may be in more niche areas, such as decentralized storage.
OP, ARB, and STRK Layer2 are the core expansion solutions of the Ethereum ecosystem. While institutions are laying out ETH, they may also focus on these high-performance chains.
Be patient and seize the next wave of wealth opportunities.
In the current market, ETH is the protagonist, but the altcoin market will only be delayed, not absent.
If you haven't boarded yet, don't worry, the altcoin market is just beginning to brew. Focus on those altcoins that may apply for ETFs, lay low, hold patiently, and the next wave of dividends is likely right here!
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