Altcoins HYPE, ZEC, NEAR surge after two crypto shocks

The cryptocurrency market has entered a period of structural changes, driven by two back-to-back major shocks that rattled investors and heightened volatility. According to on-chain analytics platform CryptoQuant, the familiar “shock” formation recurring in crypto market cycles has once again become apparent, signaling that classic cycle patterns continue to shape market dynamics.

Repeating shockwaves in market cycles

In a recent analysis, CryptoQuant outlined that crypto cycles often unfold through three distinct shock phases. The first tremor comes early in the cycle, followed by a more disruptive event in the middle period. The final, sharpest shock typically marks the market bottom, often triggering a new phase of accumulation and strategic repositioning.

CryptoQuant analyst Crypto Dan observed that the current cycle is mirroring previous patterns. He noted that, even after two considerable shocks, downward pressure remains and the process may not be over, with a final potential shock still looming on the horizon.

The typical pattern in crypto market cycles starts with an initial shock, is followed by a middle-cycle shake-up, and climaxes with the strongest shock at the bottom. We have already experienced two major shocks, and a similar progression is unfolding now, explained Crypto Dan from CryptoQuant.

Glossary: Spot and derivative markets in crypto refer to venues where straightforward trading occurs (spot) or where traders take on future or options positions (derivatives). Derivatives, in particular, amplify risk and liquidity sensitivity due to volatile price movements.

Signals point to an altcoin revival

While market turbulence continues, prominent crypto strategist Michaël van de Poppe has identified renewed momentum across key altcoins. According to Van de Poppe, highly volatile cryptocurrencies such as HYPE, ZEC, and NEAR have already emerged as early standouts in the current cycle, drawing traders’ attention as potential trend-setters.

At this phase in the cycle, coins like HYPE, ZEC, and NEAR are taking the spotlight. As leaders initiate price moves, capital tends to flow into the broader ecosystem, particularly into perpetual DEXs, privacy-focused coins, and AI-driven protocols—these are likely the next sectors to watch, Michaël van de Poppe noted.

Analysts believe any amplification of the ongoing altcoin season will depend heavily on global macro conditions. Easing bond yields and a cooldown in energy prices could stimulate greater risk appetite among investors. Experts highlight that projects connected to the Ethereum ecosystem have typically demonstrated strong performance during such capital rotations.

Liquidity shift and ecosystem impact

Industry reports emphasize that major shocks in the market are often followed by a gradual redirection of capital toward altcoins. Observers generally agree that strength in leading tokens is frequently mirrored downstream, as liquidity migrates to sector ecosystems and trending altcoin groups over time.

After cyclical shocks, liquidity in the crypto market often shifts sequentially: first to coins demonstrating robust rallies, then to projects affiliated with core ecosystems, and finally spreading across the broader altcoin segment. Experts caution that while investors are remaining prudent amid these transitions, the evolving landscape is also opening doors to fresh opportunities.