Altcoin ‘Euphoria’ Awaits 16% Market Cap Surge, Says Trader

A crypto trader predicts the “euphoria phase” for altcoins will begin only after the total altcoin market cap rises 16% to surpass its 2021 all-time high of $1.13 trillion. Until then, the market could remain volatile and “choppy.

The cryptocurrency market is poised for an “euphoria phase” in altcoins, but it requires a significant boost in the total market capitalization of altcoins, according to pseudonymous crypto trader Daan Crypto Trades. The trader stated in a Dec. 28 X post that the TOTAL3 index—the total market cap of all cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH)—needs to break its 2021 all-time high of $1.13 trillion to trigger the anticipated mania phase.

The Path to Euphoria

Currently, the TOTAL3 stands at $962.78 billion, marking a 91.45% increase since the start of 2024, according to TradingView data. Despite this growth, the market remains volatile, and Daan predicts it will stay “choppy” unless the market cap breaches $1.1 trillion.

The trader expressed caution, suggesting a dip below $800 billion would warrant increased vigilance. “As long as this trades between ~$840B and ~$1.1T, I think it will be choppy,” Daan noted, emphasizing the importance of surpassing the 2021 ATH for a sustained bullish run.

Shifting Market Dynamics

The crypto market’s volatility appears exacerbated by a growing short-term trading mindset. Daniel Cheung, co-founder of Syncracy Capital, commented in a Dec. 28 post that traders have adopted high-frequency trading strategies, monitoring hourly charts and leveraging positions. This shift may explain why altcoins have yet to experience explosive growth akin to previous market cycles.

Altcoins Gaining Momentum

Amid the market’s evolving dynamics, traders are starting to rotate toward altcoins, citing their better risk-reward profiles. Pseudonymous trader Dyme noted that the time to dollar-cost-average (DCA) into Bitcoin has passed, urging investors to shift focus to altcoins for optimal returns over the next 1.5 years.

In the past week, several altcoins have led the charge. The top gainers among the top 100 cryptocurrencies include Bitget Token (BGB) with an 80.65% rise, Virtuals Protocol (VIRTUAL) at 42.30%, and Pudgy Penguins (PENGU) with 31.63%, per CoinMarketCap data.

Bitcoin dominance, nearing 60% amid a slight price stall, further supports the argument for shifting focus to altcoins as the new cycle’s primary drivers.

Outlook for 2025

If the TOTAL3 breaches the $1.1 trillion mark, it could mark the beginning of a new altcoin season, setting the stage for substantial growth across the crypto market. Until then, caution and calculated investment strategies remain key as traders navigate choppy waters in the lead-up to potential altcoin mania.

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