In style crypto analyst Nicholas Merten has made a prediction concerning the altcoin market. In keeping with Merten’s latest DataDash replace, he anticipates a big decline within the altcoin market cap, primarily influenced by the plummeting worth of memecoin Pepe (PEPE).
Merten highlights that the present state of the altcoin market lacks any vital catalyst to draw elevated liquidity. To assist his prediction concerning the ongoing decline in altcoin market liquidity, Merten dives into the latest worth actions of three layer-2 scaling answer tasks: Optimism (OP), Arbitrum (ARB), and Polygon (MATIC).
By analyzing the worth motion of those tasks, Merten says that there’s a continued drain of liquidity from the altcoin market. Merten additionally says that Pepe is a telltale signal that the altcoin market is weakening.
“And if Pepe wasn’t the signal right here for you guys. I don’t know what’s. If the one factor that’s getting individuals excited in this time period is a memecoin, which has been dumping right here over the previous couple of days. That is simply abysmal for the trade. Hypothesis doesn’t do effectively in contractionary environments,” he added.
In distinction to Merten’s perspective, crypto analyst Michael van de Poppe holds a special view, particularly with the upcoming Bitcoin halving occasion. Van de Poppe believes that now’s the proper time to build up various cash or altcoins.
In keeping with his evaluation, the Bitcoin halving can probably result in elevated liquidity movement into altcoins as traders search alternatives past the dominant cryptocurrencies.
He wrote, “For altcoins, the time to build up them has come. One 12 months earlier than the halving -> time to purchase these positions. Reached an essential degree right here, which can be approx. 1 12 months earlier than the halving.”
