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Investors are always monitoring the cryptocurrency market for dominance dynamics between Bitcoin and altcoins. While the flagship crypto asset is currently showing strength, Dan Tapiero, the founder of 50TFunds, has made a bullish case for altseason, predicting that a big rally is coming soon for altcoins.
Undervaluation of altcoins
In an update shared with the broader crypto community, Tapiero based his prediction on the historical performance of altcoins. Notably, he analyzed the total market cap of altcoins and observed that despite all the new projects in the space from 2018 to date, growth has not been massive.
This means that the altcoins have recorded slow growth indices relative to the innovations in the sector over the last seven years. He mentioned nine primary triggers worth watching out for.
"Unchanged from '21 peak, not that much above '18 peak. 7 yrs ago there were no stables, no defi, no yield, no sol, no nft, no dexs, no rwa, no ai, no prediction mkt etc etc," he wrote.
With the post, Tapiero pointed out a very crucial factor about the sector. According to him, in 2018, there were no stablecoins, decentralized finance (DeFi) protocols, NFTs or real-world asset tokenization, among others.
With these innovations, it is expected that they would impact growth figures with new avenues for investors to enter the market.
However, Tapiero observed that the figures are not significantly higher than the 2021 bull peak run. He argues that the value of the different innovations has not been "priced in."
Altcoin rally could outperform Bitcoin, reports suggest
Tapiero maintains that the current undervaluation of altcoins is not sustainable. This implies that altcoins will soon witness a major rally and outperform Bitcoin.
Interestingly, Tapiero is not the only one predicting a bullish time for altcoins. As per a recent Coinbase Institutional report, a "full-scale altcoin season might be on the horizon. If this happens, as high as 75% of alternative crypto assets could outperform Bitcoin.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team