Bitcoin is in the process of pricing and is setting a new all-time high every day. But despite soaring prices, well above the previous record, altcoins have barely moved in comparison.
Traditional funding will soon move and diversify profits, however, and when it does, a licensed financial analyst will claim that it is DeFi tokens and not Ethereum or other altcoins.
Analyst: Traditional Bitcoin Investors To Diversify In DeFi
Bitcoin price was over $ 28,000 on the holiday weekend, and the crypto market is feverish with FOMO.
Most of the capital and interest has surrounded Bitcoin so far, but all eyes are on altcoins for the later “old season” and the “life changing wealth” they are supposed to bring.
Related reading | Prelude to Altcoin Season: Active Ethereum addresses revisit the DeFi Summer highs
And while Ethereum surfaced over the weekend as Bitcoin cooled, Arca Jeff Dorman’s chartered financial analyst and CIO said it will be DeFi tokens that traditional finance will next turn to, rather than the top altcoin.
In fact, many altcoins could be excluded from this bull run. Here’s why.
Will Bitcoin Profits Flow into DeFi Tokens? | Source: BTCUSD on TradingView.com
Why the altcoin season could be very different in this market cycle
Dorman says traditional financial investors have overcome the “impossible to evaluate hump” with Bitcoin, but will ultimately “gravitate toward cash flow evaluation if given the choice.”
In essence, traditional financial investors will prefer the untraditional new form of decentralized financing as those assets also have additional returns that are similar to stock dividends.
Additionally, several altcoins – even those in the top 25 crypto assets by market cap – had three years to incorporate a project into a product and give investors a reason to come back.
Related reading | Transaction fees for Ethereum rise in the second round of the DeFi season
The Ethereum may be the foundation for DeFi dapps, but rising network charges every time the technology is deployed underscores the lack of scalability. This is less important for Bitcoin, but since Ethereum is about utility, fees are important.
Other altcoins are still buried in negative spirits, an army of sellers waiting to be dumped as soon as they start making profits again, and even large assets like XRP are now out of the way. Bitcoin forks have also proven useless compared to the Real Deal by a vote of investor capital.
For all of these reasons and many more, DeFi will shine in the coming bull market and be particularly attractive for traditional financing.
Featured image from deposit photos, charts from TradingView.com