A well-known crypto analyst, Pentoshi, believes the massive altcoin gains of 2017-2021 won’t be repeated. He shared his thoughts with his large following on X (formerly Twitter).
Why the Altcoin Party’s Over (Probably)
Pentoshi argues that the crypto market is vastly different now. It’s much bigger, with millions more participants. The total altcoin market cap was a tiny $13 billion back in 2017; now, it’s significantly higher, making massive percentage gains much harder to achieve. He points out that the DeFi (decentralized finance) space essentially started from zero back then. This time, we’re starting from a much higher baseline.
The Next Big Thing: Robotics and AI?
Pentoshi predicts that the next big investment boom might not even be in crypto. He thinks robotics and artificial intelligence (AI) are poised to explode. With labor representing a huge chunk of global GDP (around $50 trillion annually), and rapid advancements in these fields, he expects significant investment to flow into them. He acknowledges that some of this investment could eventually find its way back into crypto, particularly into utility tokens. He’s less optimistic about memecoins, considering them too “extractive.”
Realistic Expectations for Crypto
While Pentoshi doesn’t foresee a repeat of the previous altcoin frenzy, he still thinks the total crypto market cap could reach around $4.4 trillion (it’s currently around $2.97 trillion). He emphasizes that the market is maturing, and the massive returns of the early days are unlikely to be replicated. Moving the market now requires significantly more capital than before. He suggests setting more realistic expectations for both altcoins and the overall crypto market. His previous predictions were relatively conservative, and he still believes the $4.4 trillion market cap is achievable.
