While Bitcoin set new records last year, altcoins delivered a comparatively muted performance. The divergence widened the so-called Bitcoin dominance metric, which tracks Bitcoin's share of total crypto market capitalization and tends to rise when capital concentrates in Bitcoin rather than spreading across smaller tokens. Altcoin investors, disappointed by the 2025 rally, are now looking ahead to the next market cycle with anticipation.

Popular analyst Michael van de Poppe argues that the long-running altcoin bear trend is finally coming to an end.

In his latest YouTube video, van de Poppe stated that his conviction in altcoins remains unchanged, noting that approximately 98% of his portfolio is currently allocated to altcoins. However, he does not plan to hold all of these positions indefinitely.

Van de Poppe outlined a strategy centered on rotating between different coins, actively trading during market fluctuations, and taking profits during rallies. He added that he intends to gradually increase his allocations to Bitcoin, Ethereum, and cash in order to mitigate risk.

The analyst also shared several specific altcoin picks. He highlighted Avalanche (AVAX) as a particular focus, having recently invested $3,000. Van de Poppe stated that he plans to purchase more if AVAX reclaims the $7 level and subsequently forms an upward divergence, with additional investments planned in the $7,000 to $10,000 range. He attributed his interest in AVAX to its growing real-world asset (RWA) activity, which he believes makes the current valuation attractive. RWA refers to the tokenization of traditional financial instruments such as treasuries, credit, and real estate on blockchains, a sector that has drawn interest from both crypto-native projects and traditional financial institutions.

Van de Poppe also discussed NEAR Protocol (NEAR), noting that the token climbed from approximately $1.20 to $3.50. During that move, he sold a portion of his holdings and intends to trade more actively during future market corrections. NEAR Protocol is a layer-1 blockchain focused on developer usability and scalability through its sharding design.

His portfolio additionally includes Wormhole, which represents approximately 17% of his assets, and EigenLayer, which accounts for roughly 11%. Wormhole is a cross-chain messaging protocol that enables asset and data transfers between disparate blockchain networks, while EigenLayer is a restaking protocol built on Ethereum that allows staked ETH to be reused to secure additional services. He indicated that he is considering trading EigenLayer more actively going forward.

Van de Poppe also pointed to Aave (AAVE) as part of his altcoin holdings, highlighting a technical signal. After trading below its 21-day and 50-day moving averages for roughly a year, AAVE recently broke above both levels. Moving averages are commonly used technical indicators that smooth price data over a set period, and breakouts above them are often interpreted by traders as potential shifts in momentum. Aave is a decentralized lending and borrowing protocol that allows users to earn interest on deposits or borrow against collateral. According to the analyst, this breakout suggests that AAVE may be entering a new bullish phase.

Van de Poppe concluded by emphasizing that these views reflect his personal market expectations and that each investor should make their own individual decisions.

*This is not investment advice.