In November, alts market capitalization evaporated by over 1 trillion, but analysts are optimistic about the next round of expansion.

In November, the Crypto Assets market experienced severe Fluctuation, with the TOTAL3 index plummeting significantly. A large amount of funds flowed into stablecoins, resulting in the market capitalization of alts evaporating by over 1 trillion USD. The TOTAL3 index represents the total market capitalization excluding Bitcoin and stablecoins, serving as an important indicator for measuring the capital rotation in different encryption zones.

Analysts generally believe that the current market conditions may signify the end of the altcoin bear market, rather than the conclusion of an overall bull market. Market data shows that the fall of Bitcoin has led to the influx of funds into stablecoins, which then gradually rotate back into altcoins. An analyst named “Stockmoney Lizards” described this pattern as a waiting period.

Michaël van de Poppe, the founder of MN Fund, pointed out that the current stage corresponds to the end of the altcoin bear market, and historical cycles indicate that the next round of expansion is about to arrive. He emphasized that the current cycle is different from the traditional four-year Web3 cycle, reminding investors to pay attention to market rotation.

Analyst Sykodelic discovered through comparing the historical chart of TOTAL3 that the current market situation resembles the pattern seen before previous altcoin expansions. Although many alts fell over 50% in November, there has been a slight rebound recently, with Bitcoin and Ethereum partially regaining ground, while tokens like Hyperliquid and Avalanche have seen even more significant increases.

Overall, although alts experienced a heavy fall in November, market signals indicate that funds may be accumulating momentum for the next round of altcoin expansion. (crypto.news)