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Cryptopolitan
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Cardano Founder Predicts ADA, Ethereum, and XRP As Market Cycle Winners
Cardano’s founder, Charles Hoskinson, is confident that ADA, Ethereum, and XRP will be the best performers in the current cryptocurrency space. In an episode of the Gokhstein Media podcast on February 13, he provided his view on the market’s strength, the role of institutions, and the factors driving its growth.
Hoskinson noted that the crypto market had its first institution-based cycle, which tends to reduce volatility and bring more stability. He cited the market’s ability to quickly recover from a slump that occurred on February 3rd when former U.S. President Donald Trump announced tariffs.
While $2.3 billion in liquidations impacted 700,000 leveraged traders, the market bounced back in two days, which did not happen in the FTX and LUNA-related crashes. As Hoskinson stated, institutional investors are focused on core assets that he called “dinosaur coins,” which include ADA, ETH, and XRP. These assets have already shown good improvement, especially in the fourth quarter of 2024, and attracted the attention of ETF issuers.
Bitcoin’s dominance and potential ETFs
Hoskinson also pointed towards Bitcoin as the ultimate winner in the long run. He anticipates that numerous states will keep BTC in their reserves, and the result will be at least $ 250,000 per coin.
Prominent trader DonAlt echoed such sentiments, emphasizing that superior investment is preferable to following the hyped bandwagon. He mentioned that the crypto market has grown to about 33 million tokens, ten times greater than in prior cycles. He further pointed out that this has made major altcoin rallies less probable. However, he stresses that the investor should only consider protocols with good fundamentals, like XRP or ADA.
We shouldn't be asking for alt seasonWe should be asking for serious asset seasonOnce we return to quality like $XRP and $ADA the market can heal again
— DonAlt (@CryptoDonAlt) February 12, 2025
ETFs could also greatly influence the market by determining market trends. Although Bitcoin ETFs have seen about $10 billion in inflows this year thus far, there are debates regarding the altcoin’s ETFs. If the focused funds appear in XRP or ADA, capital can flow from Bitcoin ETFs into these coins, thereby driving the buying pressure.
What is the role of the regulatory developments in the upcoming bull run?
According to Hoskinson, new rules and regulations, particularly in stablecoin policies, may be the trigger behind the next bull run. He believes that it will continue to rally in the next six to twelve months as talks on the regulatory framework shift to focus on token classifications and other issues of custody. However, he also pointed out that there will be a quick variation due to the new developments in the market.
The general absence of a wider altcoin season continues to be an area of concern for investors. While BTC has repeatedly reached new all-time highs, most altcoins have not been able to attain similar feats. Previous highs have been exceeded only by a handful, like Solana (SOL).
The total cryptocurrency market capitalization reached an average growth of 98.41% in 2024, but if we exclude Bitcoin, it was only 71%, showing the disparity. Meme coins continue to dominate short-term trading, managing to attract liquidity. According to DonAlt, there is a need for fundamental-based investing or investing in profitable utility projects in the future.
Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet
Hoskinson noted that the crypto market had its first institution-based cycle, which tends to reduce volatility and bring more stability. He cited the market’s ability to quickly recover from a slump that occurred on February 3rd when former U.S. President Donald Trump announced tariffs.
While $2.3 billion in liquidations impacted 700,000 leveraged traders, the market bounced back in two days, which did not happen in the FTX and LUNA-related crashes. As Hoskinson stated, institutional investors are focused on core assets that he called “dinosaur coins,” which include ADA, ETH, and XRP. These assets have already shown good improvement, especially in the fourth quarter of 2024, and attracted the attention of ETF issuers.
Bitcoin’s dominance and potential ETFs
Hoskinson also pointed towards Bitcoin as the ultimate winner in the long run. He anticipates that numerous states will keep BTC in their reserves, and the result will be at least $ 250,000 per coin.
Prominent trader DonAlt echoed such sentiments, emphasizing that superior investment is preferable to following the hyped bandwagon. He mentioned that the crypto market has grown to about 33 million tokens, ten times greater than in prior cycles. He further pointed out that this has made major altcoin rallies less probable. However, he stresses that the investor should only consider protocols with good fundamentals, like XRP or ADA.
We shouldn't be asking for alt seasonWe should be asking for serious asset seasonOnce we return to quality like $XRP and $ADA the market can heal again
— DonAlt (@CryptoDonAlt) February 12, 2025
ETFs could also greatly influence the market by determining market trends. Although Bitcoin ETFs have seen about $10 billion in inflows this year thus far, there are debates regarding the altcoin’s ETFs. If the focused funds appear in XRP or ADA, capital can flow from Bitcoin ETFs into these coins, thereby driving the buying pressure.
What is the role of the regulatory developments in the upcoming bull run?
According to Hoskinson, new rules and regulations, particularly in stablecoin policies, may be the trigger behind the next bull run. He believes that it will continue to rally in the next six to twelve months as talks on the regulatory framework shift to focus on token classifications and other issues of custody. However, he also pointed out that there will be a quick variation due to the new developments in the market.
The general absence of a wider altcoin season continues to be an area of concern for investors. While BTC has repeatedly reached new all-time highs, most altcoins have not been able to attain similar feats. Previous highs have been exceeded only by a handful, like Solana (SOL).
The total cryptocurrency market capitalization reached an average growth of 98.41% in 2024, but if we exclude Bitcoin, it was only 71%, showing the disparity. Meme coins continue to dominate short-term trading, managing to attract liquidity. According to DonAlt, there is a need for fundamental-based investing or investing in profitable utility projects in the future.
Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.