Last week I mentioned that if $ETH breaks through $4,000, it will drive funds towards high-potential altcoins. Today, $ETH has surpassed $4,700, with ETF inflows exceeding $1 billion in a single day, and institutional and whale funds are accelerating their entry. Market sentiment and attention are confirming that judgment:
1) Global search interest in altcoins has reached a new high
2) Layer-2/DeFi trading volume continues to rise
3) The activity of funds in AI + blockchain and cross-chain infrastructure is increasing
At the same time, macroeconomic positives are being released—trade friction is easing, and expectations for interest rate cuts are rising, enhancing liquidity for risk assets. After BTC leads the way, ETH follows, and the logic of mainstream coin rotation is becoming evident. As $ETH approaches its historical high of $4,878, the relay phase for altcoins will also begin, especially for projects with solid fundamentals. Fund flows and on-chain activity will be the core indicators for selecting targets.
Currently, ETH has surpassed $4,700, institutional funds are pouring in, and the logic of mainstream coin rotation is already evident. Combining historical data and indicator signals, the relay phase for altcoins is starting. Monitoring fund flows, on-chain activity, and the aforementioned indicator combinations will be key to determining investment timing.
Below, I have organized the key indicators and historical cases for the altcoin season 👇
After watching the conversation with the oracle Tom Lee, I want to discuss the investment opportunities in #ETH breaking through $4000 and altcoins.
Recently, Wall Street veteran analyst Tom Lee shared profound insights on the future trend of Ethereum. At the same time, the price of $ETH has strongly broken through $4000, the market atmosphere has significantly warmed up, and institutional funds are pouring in, with on-chain trading activity also increasing.
These changes not only reflect the strong return of $ETH's value but also release an important signal— as $ETH becomes the core focus of market funds, the attention of investors and institutions will gradually shift to other projects within the Ethereum ecosystem, namely altcoins.
➤ Why is this wave of market activity worth paying attention to altcoins?
The rise in $ETH's price and active funds means that more institutions and large amounts of capital are entering the market. These funds often do not just stay with ETH itself but will look for the next asset with growth potential and practical application value. Altcoins, as the forefront of innovation in the Ethereum ecosystem and the broader blockchain industry, are often the focus of capital allocation.
Especially as the usage and trading demand of the ETH network increase, Layer-2 scaling solutions, DeFi protocols, and innovative projects that combine emerging technologies (such as AI and the metaverse) have all become focal points for capital. In other words, altcoins are in a "relay race" position, serving as the next investment hotspot for institutional funds outside of the ETH market.
➤ Which altcoins are worth focusing on?
1. Core projects in the ETH ecosystem—Layer-2 and leading DeFi projects
1) Uniswap ($UNI)
As the token of the world's largest decentralized trading platform, UNI directly benefits from the increased trading activity of ETH. With more users and funds pouring in, the usage and demand for UNI are steadily growing.
2) Layer-2 solutions like Arbitrum and Optimism
Layer-2 projects address the congestion and high transaction fees of the ETH network, which are key to enhancing ETH's scalability, and these tokens are increasingly favored by institutions.
3) Emerging DeFi projects like WLD (Worldcoin)
Combining innovative financial services and user growth, they have become an important direction for capital allocation.
2. Innovative projects combining AI and blockchain
1) Ozak AI
This project raised over $1.5 million during its presale phase, integrating AI and blockchain technology, closely following market trends and attracting a large number of investors' attention.
2) Other projects applying artificial intelligence and big data to blockchain are also worth continuous attention.
3. Cross-chain and infrastructure projects
1) Solana ($SOL)
Although it is a competitor to ETH, its extensive ecosystem and technological advantages still give it strong investment value.
2) Other cross-chain bridges and blockchain infrastructure-related projects are becoming increasingly important in the multi-chain era.
➤ Investment advice
1) Focus on capital flow, on-chain activity, and institutional holding data to identify the altcoins truly favored by funds.
2) Adhere to fundamental analysis, pay attention to project technical strength and ecosystem development, and avoid blindly following trends.
3) Diversify investments, manage risks reasonably, and use the ETH market to drive altcoin allocations.
➤ Final remarks
ETH breaking through $4000 is not only a breakthrough at the price level but also represents the positive return of institutional funds and market sentiment. The capital's preference for the ETH ecosystem will naturally tilt towards altcoins with practical value and growth potential. Investors should seize this market wave, select rationally, follow the footsteps of capital, and capture the next wave of price increases.
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