Volatility gripped the broader crypto complex this week, with over $650 million in liquidations rocking markets as Bitcoin tested new swing lows below $63,000. However, one prominent analyst expects the turbulence to precede altcoins decoupling from Ethereum’s lethargy in the coming months.
The pseudonymous BitWhale told his followers not to be distracted by short-lived market shakeouts. He expects Ethereum’s dominance over other Layer 1s and alternative ecosystems to decline substantially in the near future.
Charts telling me, $MATIC $ADA $DOT will make a 2x run vs $ETH before the forgotten #ETF in May 2024.
So there should be a ALT SZN up end of April, where these top caps will have a Relief rally vs ETH, and than $ETH will suck back all gains from these $ALTS.
Buying $ADA $MATIC… pic.twitter.com/N9g2XTtiUP
— The BitWhale (@thebitwhale) March 19, 2024
This leadership change stems from optimism surrounding a flood of potential Ethereum spot ETF approvals by May, according to BitWhale. It mimics the dynamics that kicked off this year’s rally after spot Bitcoin ETFs opened cryptocurrency investing to a broader audience.
If the SEC green lights models from giants like BlackRock, demand for ETH exposure could siphon interest away from higher-growth opportunities. And with altcoin markets still early in recovering from the 2022 bear winter, under-the-radar gems offer more sizable return potential.
BitWhale chooses Polygon, Cardano and Polkadot
Polygon, Cardano, and Polkadot rank among BitWhale’s top altcoin picks to rotate into as capital exits Ethereum products, eventually hitting saturation. The ongoing development across these blockchains positions them to capture investor attention as hype dies down around the upcoming Shanghai upgrade.
The analyst also pointed to overlooked layer two scaling solutions like the zk-rollup project Manta Network (MANTA) acting as 10x candidates against ETH itself in the next market surge. By riding the wave of interoperability and scalability adoption, several altcoins are ready to post outsized gains compared to Ethereum in 2024’s next growth cycle.
Of course, timing calls on directional market movements present immense challenges. But for opportunistic crypto investors, identifying the likely successor to Ethereum’s temporary spotlight offers alpha-generating potential during tumultuous times.
