As the altcoin market continues its prolonged slump, an analysis has emerged suggesting that the current stagnation may represent a bottoming phase ahead of a mid-to-long-term rebound. In particular, with Ethereum (ETH) showing relative strength, growing weight is being given to the possibility that capital rotation within the market has begun.

■ 'Everything Except Ethereum'... Projects Face a Survival Test

CoinMarketCap community user Jimmyboss recently assessed in a post that the altcoin market is currently in a very difficult phase. The explanation is that aside from Ethereum, there are not many blockchain networks with active real-world usage, and many projects are being tested on their ability to sustain their ecosystems amid the market downturn.

Some analysts say this situation is becoming a criterion that goes beyond mere price declines, separating projects by their sustainability. Rather than temporary liquidity flooding in during a bull market, the ability to maintain revenue structures and user bases even in a bear market is more important for long-term survival.

■ Capital Concentrating in Bitcoin and Ethereum... 'Differentiation Among Coins Widens'

Recently, the altcoin market has shown clear differentiation among coins as capital concentrates on Bitcoin and Ethereum. The view is that projects lacking trading volume and network activity support will see limited rebounds, while networks with real utility and revenue structures are more likely to receive relatively higher valuations.

■ Not the End of a Bull Market, but a 'Preparation Process for the Next Uptrend Cycle'

Jimmyboss interpreted the current market situation not as a signal that the altcoin bull market has ended, but as a process of preparing for the next uptrend cycle. The expectation is that once Ethereum begins to gain strength first, capital could subsequently spread to major altcoins.

However, it is difficult to conclude that an altcoin rebound will materialize immediately. Market liquidity, Bitcoin dominance, the sustainability of Ethereum's trend, and each project's actual usage and revenue structure must all be supported simultaneously.

Ultimately, in the future altcoin market, which projects have secured real utility and sustainable ecosystems is likely to become a more important variable than simple price rebounds. Even if the market shifts back into a bullish phase, the analysis suggests that rather than all altcoins moving in tandem, performance may diverge depending on network competitiveness.

[※ This article was written for the purpose of providing information about the cryptocurrency market and does not recommend the purchase or sale of any specific virtual asset or guarantee investment returns. The market outlook mentioned in the article is an opinion based on individual posts and market interpretations and may differ from actual price movements. Cryptocurrencies can exhibit high price volatility, so investment decisions and responsibilities rest with the investor. This article was written with AI assistance.]