Why a Web3 investor predicts how altcoins could make a comeback

Web3 investor Jason Kam, founder of Folius Ventures shares his thoughts on the ongoing cycle, state of altcoins and investments.
In a Spaces talk on X, Kam spoke to Asian Journalist Colin Wu and said he is not optimistic about the cycle.
Altcoin Season Index shows that Bitcoin outperformed a majority of alts in the last 90 days.

Web3 crypto investor Jason Kam spoke to Asian journalist Colin Wu in a Spaces conversation on X, where both discussed the state of altcoins, what to expect this year and the next and the “optimism” or sentiment among market participants this cycle.

Bitcoin price performance in the last 90 days leads when compared to top 50 altcoins ranked by market capitalization. Data from the Altcoin Season Index shows it is not “Alt season” yet meaning, Bitcoin continues to outperform altcoins in the longer timeframe.

According to Kam, altcoins could perform better in 2025, when buying picks up in the secondary market or cryptocurrency exchange platforms.

Demand on exchanges to play key role in altcoin gains

Kam elaborates on the relationship between altcoin price, demand on cryptocurrency exchanges, new projects, token issuance and investor sentiment in a Spaces conversation with Colin Wu. Kam says he hardly made any moves, meaning did not take many positions in altcoins in the past few months, given the state of the altcoin market.

Jason 这篇文章对目前山寨币的困境分析得非常透彻。吴说周日荐读板块，一般会选择我个人认为最有信息量的文章，强烈推荐。

真正能捕获长期价值的项目数量并没有显著增加，但想上交易所、发币、套现的项目却激增了 10 倍、100 倍甚至 1000 倍。未来 6 到 12 个月内，50 到 200 个项目估值超过 5…
— Colin Wu (@WutalkWu) September 29, 2024

Altcoins continue to suffer significant drawdowns from their cycle tops, while Bitcoin holds steady above key psychological support at $65,000. Less than 40% of the top 50 altcoins have outperformed the largest cryptocurrency in the last 90 days, per data from the Altcoin Season Index.

While altcoins struggle to break out of their multi-month downward trends, Kam says that a revival in demand across cryptocurrency exchanges could play a pivotal role in driving altcoin gains.

The investor elaborated on how new projects issue tokens, list them on exchanges and shed their holdings for profit within a short timeframe, dragging down the entire value of the altcoin market.

The investor comments on how Former US President Donald Trump could influence better governance and crypto regulation, replace the Chair of Securities & Exchange Commission (SEC) and promote adoption of the digital asset class in the US.

At the time of writing, the crypto market erased nearly 1% value in the last 24 hours.

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