Analyst: Insufficient participation from retail investors may delay the altcoin market trend, sector rotation could replace general rise

According to a message from ChainCatcher, as reported by Cointelegraph, the activity of several mainstream public chains has significantly declined from their 2021 peak, indicating that the altcoin market is still in a speculative phase. The total market value of altcoins excluding the top ten cryptocurrencies is currently $277 billion, down 77% from its November 2021 peak of $492 billion.

Nansen analyst Nicolai Sondergaard pointed out that because meme coins have attracted a lot of investor attention and funds, the altcoin trend may be delayed. "The season for altcoins will still come, but it may take on a different form than before. There are more tokens now with greater decentralization; although most are rising in value, specific tracks and tokens will far exceed other sectors."

Redstone co-founder Marcin Kazmierczak added that while some altcoin prices have risen without an increase in active addresses, this indicates that we're still in a speculative phase and haven't yet entered into widespread adoption.