Following a 12-day low in Bitcoin’s dominance, altcoins like Dogecoin and XRP have been standout performers.
In every market cycle, altcoins typically rally and outperform Bitcoin after its price peaks. However, Gerry O’Shea, the head of global market analysis at crypto asset manager Hashdex, stated in an interview that while a repeat of this cycle is possible, it won’t be as dramatic as in the past. He points to the structural changes brought about by Exchange-Traded Funds (ETFs) and institutional buying in the U.S. as the reason. “There are institutional buyers supporting this process now,” O’Shea said, adding that while Bitcoin’s volatility will continue, this cycle will be very different from previous ones.
In the past, altcoin seasons were often fueled by speculative investments like NFTs, memecoins, or ICOs. However, O’Shea argues that with regulatory progress and the potential passage of stablecoin laws in the U.S., investors may now lean toward projects that offer more utility.
“Smart contract platforms that provide stablecoin infrastructure, like Ethereum and Solana, are currently showing utility,” O’Shea noted, stating this is a significant factor in the decline of Bitcoin’s dominance.
This is not investment advice.
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