Gemini exchange has amassed close to $120 million in alternative cryptocurrencies, such as Ethereum [ETH], Chainlink [LINK], and meme-based coins like Shiba Inu [SHIB] and Pepe [PEPE].
Based on data from Spot On Chain, ETH stood out in Gemini’s collection of alternative coins, with the platform acquiring a significant $103 million in the past 18 days.
Can we Expect an Altcoin Surge in 2025?
Many analysts are anticipating the kickoff of an altcoin season once the Federal Reserve starts easing, signaling a potential uptrend for alternative cryptocurrencies.
Although some altcoins began showing signs of recovery in September, with notable double-digit gains, the positive momentum didn’t extend uniformly across the entire altcoin sector.
The recent spike in Bitcoin’s dominance to a record high of 60% might postpone the anticipated altcoin rally until 2024. Some experts suggest that the altcoin season could potentially commence in early 2025.
Famous market analyst Benjamin Cowen shares a similar view, predicting a potential decline in altcoins towards the end of 2024 followed by a rebound in 2025.
“The altcoin reckoning should conclude by December 2024 (or by the second week of January 2025 at the latest).”
If this scenario plays out, the ongoing dip in high-quality altcoins could present excellent buying opportunities to capitalize on the anticipated altcoin surge in 2025.
Notably, the preferred altcoins accumulated by Gemini were trading at attractive discounts. For instance, ETH appears to be significantly undervalued, evident from negative readings in both the MVRV (Market Value to Realized Value) and MVRV Z score metrics.
These metrics compare the current price of an asset against its average acquisition cost.
A higher score implies an “overvalued” status where more holders are in profit and might opt to sell. Conversely, negative readings suggest “undervaluation.”
At the time of writing, ETH displayed readings of -15% for the 180-day MVRV and hit yearly lows in the MVRV Z score, indicating potential undervaluation at its current price levels.
Analyst Ali Martinez also pointed out the favorable risk-reward ratio for ETH if it maintains the $2,400 support and reaches $6,000.
Similarly, LINK also appeared undervalued, given its negative MVRV Z score. Therefore, if the projected altcoin rally in 2025 materializes, the top alternative cryptocurrencies in Gemini’s portfolio could offer significant returns.