🚨 Altcoin Rally: Ethereum ETF Effect Spreads 'Alt Season' Hopes
Today Korean Economic News | 2025.07.23
📌 Ethereum Breaks $3,000 as Altcoins Rise Together, But Pattern Differs from Past
💬 As Ethereum breaks through $3,000 with strong ETF (Exchange Traded Fund) money flows, major altcoins like Ripple (XRP), Solana, and Cardano are also rising together. With recent U.S. crypto regulation easing, hopes for an 'altcoin season' are growing. However, experts predict that unlike the past, the current situation with many more altcoin types will see selective investment rather than a broad market rally. As crypto market money flows in the pattern of Bitcoin→Ethereum→Altcoins, whether institutional money keeps flowing in will be a key factor for the altcoin market.
1️⃣ Easy Understanding
In the crypto market, as Ethereum (the second-largest after Bitcoin) rises, other cryptocurrencies are also going up together. This is called an 'altcoin season,' and people are wondering if a real bull market is coming.
First, let me explain what 'altcoin' means. Altcoin is short for 'Alternative Coin' and refers to all cryptocurrencies except Bitcoin. Ethereum, Ripple (XRP), Solana, and Cardano are typical altcoins.
There's an interesting pattern in the crypto market. Usually, Bitcoin rises first, then Ethereum rises next, and finally various altcoins follow. This 'rotation' happens because investors start with safer assets and gradually move to riskier but potentially higher-return assets.
Looking at the recent situation, this pattern is appearing. After Bitcoin hit over $100,000 for an all-time high, Ethereum broke through $3,000. Especially, Ethereum is getting money from institutional investors as ETFs were approved in the U.S.
An ETF is a fund that can be bought and sold on exchanges like stocks. It lets people invest in crypto indirectly without buying the actual cryptocurrency. As institutional investors can now invest in crypto more easily, big money is flowing into the market.
As Ethereum rose, XRP went up over 15% and Solana rose over 10%, showing altcoins rising together. However, experts think the pattern will be different from the past.
In the past, there weren't many altcoin types, so when money flowed in, most coins would rise sharply together. But now there are thousands of altcoins, so money is likely to spread out. Therefore, instead of all altcoins rising at once, only some coins with proven technology and usefulness are expected to rise selectively.
So if you're thinking about altcoin investment, it's important to carefully study each project's technology and prospects rather than just following the trend.
2️⃣ Economic Terms
📕 Altcoin
Altcoin refers to all cryptocurrencies except Bitcoin.
- Short for Alternative Coin, meaning cryptocurrencies created after Bitcoin.
- Ethereum, Ripple (XRP), Solana, and Cardano are typical altcoins.
- Each has unique technology and purpose, so individual project analysis is important when investing.
📕 ETF (Exchange Traded Fund)
ETF is a fund that can be bought and sold on exchanges like stocks.
- A fund that tracks specific assets or indexes, allowing indirect investment without directly owning individual assets.
- Crypto ETFs are products that make it easier for institutional investors to invest in cryptocurrencies.
- With Bitcoin and Ethereum ETFs approved in the U.S., institutional money flow is increasing.
📕 Alt Season
Alt Season means a period when altcoins rise more than Bitcoin.
- Usually happens after Bitcoin rises first, then money moves to altcoins.
- In the past, broad altcoin rises occurred, but now selective rises are more likely.
- The duration and strength of alt season depends on overall market conditions and money inflow size.
📕 Market Cap (Market Capitalization)
Market cap shows the total market value of a cryptocurrency.
- Calculated by multiplying current price by total supply.
- Bitcoin has the largest market cap, with Ethereum in second place.
- Larger market caps are relatively more stable but may have limited growth potential.
3️⃣ Analysis and Economic Outlook
✅ Money Flow Patterns in Crypto Markets
Let's analyze the money movement patterns in crypto markets and their background.
First, let's look at money rotation starting from Bitcoin. In crypto markets, money often moves in the pattern Bitcoin→Ethereum→Altcoins. This is because investors start with relatively safer assets for risk management. Bitcoin is called the 'digital gold' of crypto and is seen as the most stable asset. With a market cap of about $2 trillion, taking over 50% of the total crypto market, institutional investors also prefer this asset most. Bitcoin recently breaking through $100,000 to reach new highs is also a result of this money inflow.
Second, Ethereum's bridge role becomes a signal for altcoin rises. Ethereum is the second-largest crypto by market cap and serves as a platform for smart contracts and decentralized applications (DApps). After Bitcoin rises, investors tend to move money to Ethereum seeking higher returns. Recently, with Ethereum ETF approval, institutional money flowed in heavily, breaking through $3,000, which is becoming a sign of altcoin rises. When Ethereum rises, various DeFi (Decentralized Finance) tokens based on the Ethereum ecosystem also tend to rise together.
Third, money spreading to altcoins is closely related to investor psychology. When Bitcoin and Ethereum show stable upward trends, investors' risk appetite increases and they try more aggressive investments. This is when altcoins get attention because they can expect high returns from relatively low prices. However, this pattern doesn't always repeat and can vary depending on market conditions and overall investor sentiment. Especially recently, as altcoin types have increased rapidly, money tends to spread out more, so broad rises like in the past are expected to be limited.
Money rotation in crypto markets is an important indicator reflecting investor psychology and risk appetite changes. Understanding this helps predict market trends.
✅ Impact of ETF Approval on Crypto Markets
Let's examine the structural changes that Ethereum ETF approval and institutional money inflow bring to the market.
First, institutional investors' access to crypto has greatly improved. In the past, institutional investors had to overcome complex procedures and high technical barriers to invest in crypto. They had to create crypto wallets, open exchange accounts, and accept security risks. But with ETF approval, they can now invest easily through existing securities accounts. This is a game-changer enabling investment from large institutions like pension funds, insurance companies, and mutual funds. Actually, after Bitcoin ETF approval, tens of trillions of won flowed in, and Ethereum ETF is showing similar effects.
Second, the financialization of crypto has begun in earnest. ETF approval means crypto has been recognized as official financial products rather than just speculative assets. This means getting official recognition from regulators, which has the effect of increasing social trust in crypto. Also, as crypto investment becomes simpler through ETFs, general investors can access it more easily. Going forward, other major altcoins are likely to get ETF approval too, which is expected to drive overall market growth.
Third, market volatility is expected to decrease while stability increases. Institutional investors tend to invest from a long-term perspective, unlike individual investors. As their money inflow increases, sharp market ups and downs are likely to decrease, showing relatively stable upward trends. However, explosive rises like in the past may also be limited. Due to the nature of institutional money prioritizing stability, it's likely to concentrate on verified major crypto assets, which could accelerate market polarization.
ETF approval is an important milestone showing crypto market maturation and is expected to increase both market stability and growth potential in the long term.
✅ Changes in Altcoin Markets and Investment Strategies
Let's analyze structural changes in current altcoin markets and effective investment approaches.
First, altcoin market structure has changed greatly from the past. Compared to the 2017 or 2021 alt seasons, the current market shows completely different patterns. Back then, there were relatively few altcoin types, so when money concentrated, most would rise sharply together. But now thousands of altcoins exist, so money has to spread out. Also, each altcoin specializes in different fields and technologies, requiring individual evaluation. With diversification into various sectors like DeFi, NFT, metaverse, AI, and GameFi, selective investment has become even more important.
Second, projects with usefulness and technology are getting priority attention. In the past, many coins could rise sharply just with buzz or marketing, but now whether the technology is actually used, whether there's a clear business model, and what the development team's capabilities are have become important evaluation criteria. Solana is getting attention for its high activity in DeFi and NFT fields with fast processing speed and low fees, while XRP is recognized for its usefulness in international remittances. Cardano pursues differentiation with eco-friendly blockchain technology. Like this, each project's unique value and technological capability are becoming key factors in investment decisions.
Third, the importance of risk management and diversified investment has grown. Altcoin investment carries much higher risks than Bitcoin or Ethereum investment. Because volatility is high and projects can fail. Therefore, rather than concentrating investment in one coin, it's better to diversify across multiple fields. Also, investment amounts should be decided within ranges you can afford to lose. Especially for beginner investors, it's safer to invest only about 5-10% of total assets in crypto, and within that, allocate more to major coins like Bitcoin and Ethereum.
Altcoin investment involves high profit potential along with big risks, so thorough research and careful risk management are essential.
4️⃣ In Conclusion
The altcoin rise along with Ethereum's rise shows the typical money rotation pattern of crypto markets. However, unlike the past, current markets have more complex and segmented structures, requiring more careful approaches from investors.
Institutional money inflow due to ETF approval is bringing positive changes to crypto markets. Market stability is increasing and social trust is also improving, so healthy growth foundations are being established for the long term. Especially, Ethereum's breakthrough to $3,000 is providing positive momentum to the entire altcoin market.
However, it will be difficult to expect a broad altcoin bull market like in the past, or a 'super cycle.' As altcoin types have increased rapidly, money is spreading out, and investors are also approaching more carefully than before. Therefore, rather than all altcoins rising together, only selected projects with usefulness and technological capability are likely to show continued growth.
For those considering investment, I'd like to give some advice. First, don't make hasty investments swept up by FOMO (Fear of Missing Out). Please carefully examine each project's technology, team composition, usefulness, and future prospects before making investment decisions.
Also, please manage risks thoroughly. Crypto investment involves big risks along with high profit potential. Please invest only part of your total assets, diversify across multiple coins, and invest only within ranges you can afford to lose.
Ultimately, the future of altcoin markets depends on technological innovation and usefulness. Projects that create real value rather than just buzz or speculative interest will survive long-term. If investors also approach carefully from this perspective, they can achieve healthy investment results.