Author: Katherine Ross, Blockworks; Compiled by Bai Shui, Jinse Finance
We keep asking ourselves a question: when will Altcoins take off?
To be fair, David has done a great job in preparing for the next Altcoin season's takeoff. But to find out how optimistic people should be, I turned to Jupiter Cheng of HashKey.
When it comes to when we can see the next Altcoin season, Zheng and David agree, and HashKey has compiled a report explaining why the team is now so bullish on Altcoins.
Part of the reason is that Bitcoin's dominance may peak, and if you're a regular reader of 'Empire', you'll know this is one of the necessary factors for Altcoins to take off.
Once Bitcoin's dominance exceeds 60% or even 65%, Zheng expects a "massive Altcoin season" to begin. BTC's current dominance is 61.64%.
Zheng emphasized that he is focusing on three successful areas: Ethereum, Solana, and certain tokens in DeFi, such as UNI and SKY (formerly MKR).
Let's start with Ethereum, especially since it feels like more and more people are falling off the bull market train.
HashKey believes there are three factors that could lead to Ethereum's collapse: increased competition, value transfer, and lower transaction fees.
Review of past Altcoin seasons provided by HashKey
The report states: "Currently, the Ethereum community is developing metrics to measure 'Ethereum coherence', and these efforts are expected to produce best practices that further consolidate the Ethereum ecosystem and ensure long-term success."
As for Solana, it is a "major base game" different from Ethereum's "dilemma game".
"Solana has achieved a lot this year, and compared to Ethereum, Solana is a bit centralized, but very efficient. So Solana's operational capability is very strong. Ethereum is more focused on technology... the technology layer, the decentralization layer, and the security layer, but Solana is more focused on how to achieve mass adoption," Zheng explained to me.
In addition, Zheng believes this will be the next token to be chosen by ETFs after ETH and BTC funds.
In summary, "Many DeFi projects from the last cycle have gradually become infrastructure and cross-cycled, forming a 'must-have' pattern," HashKey wrote.
But it's not all bull market and daydreaming, Zheng is not so optimistic about some things.
For example, Layer 2. There are only so many projects that investors can focus on. And even beyond that, "only the top 5 or top 10 have value," he explained.
To solve this problem, he proposed a suggestion: "If we try to choose the best Layer 2 from the [provided] 100, it's quite difficult, so maybe just choose the top ones, like we choose the seven champions from the US stocks."
