CryptoQuant CEO and Citi analysts weigh in on altcoin’s performance for 2025

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2025 may see altcoins falling short of revolutionizing the market according to the CEO of CryptoQuant, while analysts from Citibank express optimism. So, the future of altcoins in 2025 could be a mix of challenges and opportunities.

Ki Young Ju, CEO of CryptoQuant, explains that the altcoin market resembles a “zero-sum contest” where profits are mainly derived from other participants and there’s no fresh capital entering the market. In simpler terms, as one person gains, another must lose an equivalent amount, much like a game where the total prize pot remains constant.

On January 10th, I posted on Twitter that the market value of Bitcoin (BTC) has more than doubled, whereas the total market capitalization of alternative cryptocurrencies (altcoins) hasn’t yet surpassed its previous all-time highs. In essence, only a handful of altcoins with strong use cases and compelling stories seem to be able to endure.

Currently, the altcoin market resembles a battlefield where each coin competes against every other (zero-sum PvP game). While Bitcoin has more than doubled its total market value, the combined market cap of all altcoins remains below its all-time high. Instead of attracting new capital, the market cap is shifting among the coins themselves.

Ultimately, only those alts with solid use cases and compelling narratives will be able to endure in this competitive landscape.

— Ki Young Ju (@ki_young_ju) January 9, 2025

As a crypto investor, I’ve noticed that altcoins might have a distinctly optimistic future, as suggested by Citi analysts. Among these promising assets, Ethereum (ETH), the second cryptocurrency after Bitcoin (BTC) to receive approval for spot ETFs, appears to be a strong candidate for market rotation, according to Jinshi’s report on January 8, 2025.

According to Citi analysts, the surge of Bitcoin in 2024 was truly remarkable, jumping an impressive 116% over the year. Key factors contributing to this growth were the approval of spot Bitcoin ETFs, the April halving event, and Donald Trump’s victory in the U.S. election. However, these analysts predict that 2025 might be the year for ‘altcoin season’, given Ethereum’s (ETH) recent 59% increase over a month’s period. They also anticipate growth for Ripple (XRP), Solana (SOL), and Tron (TRX).

How will altcoins perform in 2025?

Looking ahead, the year 2025 might signal a pivotal moment, as we witness the emergence of fresh narratives and an increasing influx of venture capital into the next wave of growth. Remarkably, crypto fundraising continues to surge, with deployed capital and deal volumes nearly doubling for the third consecutive quarter. As per Pitchbook’s data, a staggering $2.4 billion was deployed across 518 rounds from January through March of 2024 alone, demonstrating a significant increase in investment activity within this sector.

In Q3, AI secured the biggest funding round with $106 million, valuing it at $1.1 billion before additional funds are added. This shows that investors are growing more interested in early-stage projects, especially those in emerging sectors like decentralized physical infrastructure networks. In fact, early-stage deals saw a 148.3% increase in median pre-money valuation compared to the previous year. If this trend continues, investments in promising projects and categories could skyrocket, aligning with Jus’ emphasis on strong narratives and Citis’ forecast of a broader “altcoin season”.

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2025-01-10 08:14