Willy Woo is blowing alarm against altcoins as he believes most are overhyped as compared to memecoins that are known for their volatility
The debate on the long-term value of altcoins appears far from over. Analysts have held different views on these assets since 2011 when Charlie Lee forked Litecoin from the Bitcoin blockchain. Crypto analyst Willy Woo on X has shared his views on the altcoin market performance.
3 Altcoin Seasons and Impact
Notably, Woo has taken a critical stance on the altcoin market’s evolution since 2017, identifying three distinct cycles. He cautions retail investors, emphasizing that while altcoins present short-term trading opportunities, they bear risk in the long term.
I haven’t talked about altcoins in years, I quit my interest in them after the “shit rolls downhill chart” mapping the performance of 10,000 of them. But someone asked me specifically and this is how I see altcoin market cap…
This cycle has been markedly different from others.…
— Willy Woo (@woonomic) October 26, 2024
According to Woo, despite the promises and trends on altcoins, they have all turned out as being “overhyped” and left investors “burned.” He identified 2017 as the first season when new altcoins flooded the market and gained huge attention. However, investors experienced massive losses as the hype built around them faded.
According to Woo’s analysis, the second cycle occurred between 2020 and 2021. It revolved around Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs). This also gained traction with many retail investors, who ended up losing funds.
The current season or cycle has the industry’s attention on memecoins, which Woo describes as “bubble casinos.” He noted that, unlike previous projects, memecoins were not packaged as disruptive world-changing technology. Therefore, investors know and understand the volatility of these altcoins.
Woo’s Cautionary Message for Altcoins Investors
Woo referenced the dominance chart, which monitors Bitcoin’s market capitalization against the total crypto market cap. The figures show that Bitcoin has maintained dominance over time despite speculations that altcoins would flip it. He argues that “normality and sense” prevailed.
Although Woo anticipates “alt seasons,” that is, periods when altcoins rally, and investors seek higher returns, it will never compare to the 2017 season. The crypto analyst believes using the market cap to assess the performance of altcoins does not give an accurate representation.
This is because as failed projects drop off, new ones replace them to boost the figures. This leaves losers suffering the loss of their investment alone. Woo, therefore, warned against HODLing altcoins as the chances of making a profit in the long term remain slim.
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