Altcoin Rally Expected to Outperform Bitcoin by 7x as AI Adoption Surges
Ran Neuer, an analyst, believes that the next crypto bull market will be driven primarily by altcoins rather than Bitcoin. He expects altcoins to outperform Bitcoin by a factor of 7x this cycle, citing historical patterns and chart analysis.
The pattern he's referring to is based on the ratio between 'Others' (altcoins excluding the top 10 by market cap) and Bitcoin's price. According to Neuer, this ratio has been moving in an uptrend despite two previous boom-and-bust cycles. He notes that it currently sits near the bottom of its historical channel.
Neuer estimates that altcoins could deliver roughly 14x returns on average this cycle, based on his conservative estimate of a 2x Bitcoin gain from current levels and the projected 7x outperformance by altcoins. He acknowledges that this sounds aggressive but points to similar ratios in prior cycles.
The catalyst for this potential rally is the increasing adoption of AI agents trading on-chain, which Neuer believes will drive fees generated from transactions to protocols related to altcoins, rather than Bitcoin itself.