The likelihood of Altcoins exploding like 2021 is very low

Liquidity fragmentation and sharply changing market sentiment in 2025 contribute to the market cycle deviating from expectations for many investors. Especially those who expect altcoin season.

The possibility of an altcoin season is very low

According to @DefiMinty, the crypto market continues to have strong active areas, but the likelihood of seeing a booming altcoin season like 2021 is very low. Instead of pouring into memenoin, where investors are constantly being dumped, cash flows are now tending to go back to projects with higher applicability, especially in the AI and DeFi sectors.

Minty

@DeFiMinty

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Some Thoughts on the Market There will be pockets of outperformance in various sectors but I doubt we will get a 2021 style alt season again. For narratives, I believe utility will make a comeback. People are tired of dumped on by memes and liquidity will flow back into AI and

11:56 PM · Feb 10, 2025

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In the field of AI, @DefiMinty is following Arc, a project that has good relations with the Solana Foundation and is developing a launchpad on Solana. Meanwhile, Hyperliquid continues to lead the derivatives market (perps) when no competitors are truly competitive yet. Several other DeFi projects such as Fluid, Morpho and Pendle are also being appreciated.

Hyperliquid remains strong despite the market entering a temporary downtrend. Source: Coinmarketcap

In addition, 2025 will see the launch of many major projects such as MegaETH, Initia, Unichain, Story, Monad, and many others. @DefiMinty offers two possible scenarios: Either liquidity will be more severely fragmented, or these projects don't attract enough attention to make a difference.

Of these, he considers MegaETH to be the most notable name thanks to the echo raise model and the Fluffle launch event, which expanded the community and attracted support from multiple parties.

MegaETH raised $57.7 million in three rounds. Source: Cryptorank

According to @DefiMinty, MegaETH is moving in the direction of differentiating the existing layer 2 series, making this project more valuable. Fluffle launch is also creating an opportunity to mint NFTs for users, and he confirmed that he will participate in this mint round.

In terms of new trends, Uniswap v4 is considered to have potential but has not yet been leveraged effectively. Meanwhile, Sui could be the platform worth watching if there is a breakthrough application, but for now it still needs more time to evaluate.

However, the fact that so many new blockchain projects emerge also poses a problem: Does the market have enough liquidity to support all of these platforms? If the flow of capital is not strong enough to allocate to all, it is possible that only a small number of projects will actually survive, and the majority will fall short of attracting users.

BTC remains in the safe zone and sideways

Regarding Bitcoin, @DefiMinty suggested that the current market has not seen any notable developments, as the price is still trading in a narrow margin. Meanwhile, altcoins are experiencing liquidity dispersion issues, when the number of tokens is too large but the number of trading participants is not enough to create a strong bullish momentum.

The TOTAL2 chart shows that the altcoin is still in a downtrend and sideways. Source: Tradingview

Despite the short-term fluctuations, @DefiMinty remains optimistic about Bitcoin in the long term. According to him, the market may face pressure in the near term, but investors should not get carried away by short-term fluctuations but miss the overall picture.