According to Foresight News, crypto analyst Willy Woo has shared his insights on the current state of the altcoin market. Woo noted that he has not discussed altcoins for several years and believes that the current cycle is markedly different from previous ones. He pointed out that this is the third cycle since 2017, when altcoins first entered the mainstream, where retail investors have experienced significant losses. The 2020-21 period saw innovations in DeFi and NFTs, leading to further losses for retail investors. The current cycle, dominated by meme coins, is seen as a satire of the cryptocurrency space, not pretending to be a world-changing technology but rather an honest bubble casino. Woo suggests that retail investors might have learned their lesson after three cycles of losses. While the dominance of altcoins has not fully returned to a long-term equilibrium, the future balance remains uncertain.
Woo also mentioned that there could still be altcoin seasons, especially as investors chase higher returns on the risk curve following a surge in BTC. This is a normal part of the market, similar to trends observed in the stock market. However, since the altcoin bubble of 2017, each cycle's altcoin season has become progressively weaker. Woo emphasized that the market capitalization of altcoins only reflects the sum of new winners, excluding the losers. He advised that while trading altcoins is possible, one should never hold them unless they have a deep understanding of the internal dynamics, as altcoins are akin to a casino where the house ultimately wins.
