Altcoin Market Shows Positive Signs of Growth and Capital Shifting Away from Bitcoin

The altcoin market has been positive since October last year, with investors showing signs of shifting capital away from Bitcoin and toward the risk curve. While Bitcoin still dominates the market, ecosystems such as Ethereum, Solana, Polkadot, and Cosmos are attracting more capital.Observing through the Uniswap liquidity pool, although the total value locked (TVL) shifts towards the risk curve, the flow of funds is slower. Altcoins may be experiencing a round of growth, and with the push of new Bitcoin ETFs, the digital asset market may enter a bull market.Altcoin indicators showed positive momentum, despite a brief pause following the approval of the Bitcoin ETF, which retriggered on February 4. Bitcoin’s market value accounts for more than 52%, Ethereum accounts for 17%, stablecoins account for 7%, and the remaining altcoins account for 24%.Bitcoin and Ethereum lead the way, and the market value of altcoins has grown less than half of the two mainstream currencies. Capital inflows into altcoins have been relatively slow, showing investor caution around the high-risk curve.Among different ecosystems, Solana has outstanding performance, and the Polkadot ecosystem is ahead of Cosmos. Within the Ethereum ecosystem, there has been an inflow of funds in the DeFi, GameFi and staking fields, and the GameFi field has recently reversed.Uniswap trading shows increased interest in altcoins, accounting for nearly 12% of trading volume, approaching the peak of the bull market. Liquidity allocation changes indicate rising investor interest in long-tail tokens, but trading volumes have yet to catch up.Overall, the digital asset market may be experiencing an altcoin season, but capital is still relatively concentrated in higher market capitalization assets. As the market changes and investors' interest in outside the risk curve grows, more funds may flow into altcoins in the future.

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