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Blockchain and market data provider Glassnode’s chief analyst James Check recently shared a pessimistic outlook on the future of altcoins, which are alternative cryptocurrencies to Bitcoin and Ethereum. Check’s views were shared on X, suggesting that altcoins, including popular meme coins, could soon face significant challenges leading to their decline.
Bitcoin and Ethereum Solidify Their Positions
Check’s analysis observed that most cryptocurrency holders heavily invest in Bitcoin (BTC) and Ethereum (ETH), and these assets have solidified as leading cryptocurrencies, especially after recent developments at the U.S. Securities and Exchange Commission (SEC).
According to Check, BTC and ETH are considered “confirmed winning tickets,” making them preferred choices for investors over altcoins. He noted that most investors are now content holding these top cryptocurrencies and expect growth without turning to less established altcoins.
One of the key points Check highlighted was the weak demand for Ethereum-based exchange-traded funds (ETFs). He suggests that the lukewarm reception of ETH ETFs underscores a broader lack of serious demand for altcoins. According to Check, this weak demand might remind investors that altcoins do not hold significant value or potential compared to Bitcoin and Ethereum. While there is occasional interest in meme coins, he emphasized that this cannot be compared to the substantial investments in BTC and ETH.
Bloomberg Analyst Eric Balchunas Expresses Doubts
Check is not alone in his skepticism. Bloomberg analyst Eric Balchunas also expressed doubts about the demand for Ethereum ETFs, suggesting that investors are unlikely to seek alternatives to Bitcoin and gold for their crypto or precious metal allocations. This view supports Check’s prediction that the altcoin market will face increasing challenges as investor preferences solidify around the most established cryptocurrencies.
Despite these predictions, there has been notable activity in the altcoin market. For example, a leading meme coin, Shiba Inu (SHIB), recently raised $12 million to develop a new Layer-3 Blockchain. SHIB, the second-largest meme coin by market capitalization after Dogecoin (DOGE), shows that there is still some enthusiasm and investment in specific altcoins.
On the other hand, BRETT, a leading meme coin on Coinbase’s Ethereum Layer-2 Blockchain, has shown impressive growth, approaching a market capitalization of $500 million. BRETT remains optimistic about continuing its upward trend this year, indicating that despite a bleak broader outlook for altcoins, there are still significant activities and optimistic aspects in the market.
