Despite all these positive developments, why are altcoins lifeless? Why isn't the altcoin season coming? Top-level executive answered

Question

According to Bitwise Asset Management Chief Investment Officer Matt Hougan, despite Wall Street's increasing adoption of cryptocurrencies and regulatory changes under President Donald Trump's administration, altcoins continue to struggle.

Hougan described the current crypto investment environment as one of the best in history, referring to the decreasing regulatory threats and increasing institutional adoption. However, he noted that individual sentiment remains at one of the lowest points yet due to the low performance of altcoins despite Bitcoin's strong rally.

Bitcoin, largely driven by inflows into spot Bitcoin ETFs, surged around 90% last year. However, Hougan noted that most altcoins, with a few exceptions like Solana and XRP, did not keep up with this.

Hougan, who writes 'Average crypto assets have been shattered,' emphasizes a fundamental difficulty: the lack of a major new application to drive the adoption of Altcoin.

The ICO boom in 2017 triggered a major bull run. The rise of DeFi applications in 2020 fueled altcoin gains. Hougan argues today that while the memecoin boom is exciting, it lacks fundamental innovations to sustain long-term growth.

Despite the current downturn, Hougan believes that the foundation for the altcoin's revival is stronger than ever. According to the analyst, one of the key factors is regulatory clarity. Without mentioning former SEC Chairman Gary Gensler by name, Hougan pointed to the leadership changes at the Securities and Exchange Commission as a significant positive change. He suggested that altcoins will soon emerge from the 'regulatory gray zone' that has hindered growth in the past four years.

In addition, stablecoins, which Hougan sees as a catalyst for the rise of Ethereum and Solana, have become a national priority. At the same time, institutions have started developing crypto applications to bring DeFi to the masses, further strengthening the sector's long-term potential.

Although Hougan refrains from predicting exactly what will trigger the next altcoin season, he is convinced that a season is approaching. "Within a year or two, I don't think you'll have to squint your eyes to see the transformation in altcoins; the impact will be clear as day. And it will be overwhelming," he wrote.