Pantera Capital Portfolio Manager Says Altcoins Will Outperform Bitcoin

Key Takeaways

• Pantera Capital’s Portfolio Manager notes that over 400 tokens now boast market caps exceeding $100m.
• Bitcoin remains a heavyweight with dominance consistently being over 50%.
• Trading volumes underline an appetite for altcoins, with key indicators hinting at an impending altcoin season.

Pantera Capital Portfolio Manager and Crypto Asset Manager Cosmo Jiang thinks there is a potential crypto market shift, favoring altcoins over Bitcoin. Jiang highlighted the potential of the broader cryptocurrency market, while the industry is focused on Bitcoin’s price rally.

Despite BTC being the largest crypto by market cap, let’s understand where altcoins can outpace Bitcoin in market performance.

Over 400 Tokens

In an interview with Yahoo Finance, Cosmo Jiang brought attention to the vast universe of digital assets.  He said: “It’s important to realize that digital assets are a lot more than just [Bitcoin]. There are 400 tokens with more than a $100 million market cap.”

Notably, diversity indicates a maturing market where investors are looking beyond Bitcoin to find value and potential in other cryptocurrencies. Pantera Capital manager explained: “As the next cycle gets underway, we believe that – and we’ve seen over the last few cycles – that the other coins, outside of Bitcoin, really can outperform by many multiples during the different phases of the bull market.”

Jiang also emphasized a long-term commitment to the cryptocurrency market. He believes that tokens represent a new approach to capital formation, diverging from traditional pathways, such as listing on the New York Stock Exchange.

Bitcoin Dominance Still Strong

Bitcoin’s dominance—a metric that compares its market cap with the total cryptocurrency market cap—serves as a key indicator of broader market strength against BTC. Currently, Bitcoin accounts for more than half of the market. Ideally, a declining dominance with Bitcoin’s price rise could signal a shift towards altcoins. Crypto analyst Jelle noted on Twitter that the altcoin market cap has broken out from a prolonged accumulation phase.

Recent trends could also show a shift in market sentiment towards altcoins. The Fear & Greed index has hit  90, suggesting a peak in investor interest. Trading volumes illustrate that investors could be looking for alternative avenues, with altcoins such as Ethereum, Tether, and other rivals logging in positive activity.

Altcoins Primed for a Breakthrough?

Analyst Michaël van de Poppe hints at a significant cycle for cryptocurrencies, with altcoins expected to outperform in the upcoming months. He tweeted: “The pre-halving high for Bitcoin is likely in.”

Meanwhile, there is a broader interest in meme coins and other significant altcoin categories. The interest is also reflected in the trading volumes as  Ethereum, BNB, Solana, and Cardano are showing strong performance metrics. This has been especially the case since the focus has shifted to the decision on ETH ETF, making way for subsequent approvals.

Tether also managed to touch $100 billion in volume recently. The collective market cap of Artificial Intelligence (AI) tokens has moved beyond $25 billion, according to CoinGecko data.

Potential Beyond BTC

Bitcoin’s price reaching an all-time high has made altcoins take center stage. Despite BTC’s strong dominance, altcoin trading volumes suggest the sector is gaining traction. While some analysts expect the next few months to potentially usher in an altcoin season, diversification across token categories might be the key.