Which Altcoin Stood Out This Year?... Who Will Lead the Rise in 2025 [Kang Min-seung's Altcoin Now]

Photo = Shutterstock

Many altcoins have surged significantly since the U.S. presidential election, fueled by expectations that the U.S. under the second Trump administration will pursue pro-cryptocurrency policies. Market experts believe that if U.S. cryptocurrency regulations are eased next year and capital inflows increase, the overall cryptocurrency bull market could continue, but volatility is also expected to increase.

Recently, the altcoin market has been undergoing a short-term correction due to Bitcoin's decline. The leading altcoin, Ethereum (ETH), was trading at $3,343 (501,800 KRW on Upbit) on the Binance USDT market at 19:22 on the 28th, down 1.93% from the previous day. At the same time, Ethereum's relative value against Bitcoin (ETH/BTC) has been declining since the 24th, falling to 0.03535.

On this day, Bitcoin (BTC) dominance (the proportion of Bitcoin's market capitalization in the total cryptocurrency market) continued to decline for the second day at 58.10%. The recent decline in Bitcoin's price and dominance suggests that the overall market is weak, and the downward pressure on altcoins may increase.

Meanwhile, the Kimchi Premium (the price difference between overseas and domestic exchanges) for major virtual assets like Bitcoin is recorded at 1.57%. The Kimchi Premium, which had risen to 4.75%, is showing a decreasing trend.

"Top 10 Layer 1 Coins This Year, Average Growth Rate of 120%... Meme Coin Interest Surges"

Among the top 100 altcoins by market cap, Layer 1 project coins have risen significantly. / Photo = CoinMarketCap

The most successful cryptocurrency sector since the U.S. presidential election this year has been major Layer 1 projects. Layer 1 blockchains are characterized by having their own networks, supporting fast transactions, and relatively low fees. Investors have also focused on DeFi (decentralized finance), meme coins, and AI-related coins.

Among major altcoins, Layer 1 coins recorded the highest growth rates, followed by DeFi coins. / Photo = Kaiko

According to a recent report by cryptocurrency data analysis firm Kaiko, "The top 10 major Layer 1 project coins have risen by more than 120% on average since the U.S. presidential election, outperforming Bitcoin and Ethereum." In fact, since the U.S. presidential election, Cardano (ADA) has risen 156%, Sui (SUI) 137%, Hedera (HBAR) 485%, and Algorand (ALGO) 203%. The domestic Layer 1 coin Kaia (KAIA) also rose 67%.

DeFi coin returns based on the top 200 market cap / Photo = CoinMarketCap

With growing expectations for eased U.S. cryptocurrency regulations, DeFi has also achieved significant results. The report stated, "Next, the top 10 DeFi coins achieved high performance. Coins like Solana (SOL), Ripple (XRP), and Cardano (ADA) led the market," and predicted, "If the regulatory environment changes with the resignation of Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), these coins will benefit more."

Current SEC Chairman Gary Gensler has been pushing for strong enforcement and regulation of the cryptocurrency industry, but the atmosphere could change as Trump has nominated pro-cryptocurrency Paul Atkins as the next SEC chairman.

Returns of major meme coins like Dogecoin (DOGE) / Photo = CoinMarketCap

Meanwhile, investors have shown keen interest in meme coins and AI coins this year. Cryptocurrency data platform CoinGecko reported on the 24th, "This year, investors have shown concentrated interest in meme coins, AI-related coins, and real-world asset (RWA) related coins," analyzing that "the top 25 major meme coins captured 30.67% of global investors' interest share." Particularly, Solana-based meme coins and cat-themed meme coins have gained popularity. AI coins accounted for 15.67% of the total investor interest ratio.

Who Will Lead the Altcoin Bull Market Next Year?... "DeFi, Layer 1, Spot ETF"

With pro-cryptocurrency figures not only in the administration but also in Congress under the second Trump administration, optimism in the cryptocurrency market is gaining more strength. Market experts have analyzed that while the possibility of a cryptocurrency bull market next year has increased, volatility may also intensify, requiring caution.

First, there is anticipation that multiple altcoin spot ETFs could be launched in the U.S. next year. On the 23rd, U.S. economic media Forbes reported, "Next year, it is expected that staking features will be integrated into Ethereum spot ETFs," and "altcoin ETFs like Solana could also emerge." U.S. economic magazine Finance Magnates also reported, "Trump's nomination of pro-cryptocurrency Paul Atkins as SEC chairman increases the likelihood of altcoin ETFs like Ripple, Litecoin, Hedera, and Solana being launched."

There are also analyses predicting the strength of DeFi (decentralized finance) next year. U.S. cryptocurrency exchange Coinbase recently reported, "The U.S. has formed the most cryptocurrency-friendly Congress in history," and "the previously unclear and enforcement-focused cryptocurrency regulations could soon become favorable. If the regulatory environment changes, institutional investors' participation in DeFi could become easier." Additionally, Forbes predicted, "Following the recent surge in Bitcoin, Bitcoin-based DeFi projects are likely to grow significantly."

Investors' funds are gradually moving from Ethereum to Solana. / Photo = 21Shares report

There is also an analysis that major 'Layer 1 cryptocurrencies' with their own blockchain networks will show stronger performance. Global asset management firm 21Shares reported, "Sui (SUI), Toncoin (TON), and Solana (SOL), classified as alternatives to Ethereum due to their fast processing speeds and low fees, are likely to continue attracting new users next year," and "Solana, in particular, will continue to erode Ethereum's market share." The report analyzed that over $2 billion (approximately 2.952 trillion KRW) has moved from Ethereum to Solana this year.

There is also growing anticipation that a 'four-year cycle bull market' could arrive next year. Renowned cryptocurrency strategist Michael van de Poppe advised, "As cryptocurrency returns rise in a bull market, volatility and investment risks can also increase," and "investors are advised to move to relatively safer or undervalued coins like Ethereum when portfolio returns rise each cycle." The scale and duration of the bull market are expected to be greatly influenced by the U.S. Federal Reserve's monetary policy and Trump's cryptocurrency policies.

Recently, the market has been led by Bitcoin and some altcoins, but there is also an analysis that the overall upward trend could continue next year. Renowned cryptocurrency analyst Benjamin Cowen analyzed on his YouTube channel on the 27th, "Indicators showing the relative value of altcoins compared to Bitcoin are expected to rebound and rise next year," but also noted, "Altcoins, including Ethereum, may undergo a correction in January next year."

Kang Min-seung, Bloomingbit Reporter minriver@bloomingbit.io