The Analysis Company has announced the cryptocurrencies that have accumulated more Long positions than Short in the last week!

A leading cryptocurrency analysis firm, Alphractal, has published information on the current state of the cryptocurrency market.

According to the company, the number of active altcoins listed on CoinMarketCap decreased by 400, indicating a decline in public interest.

This decline is largely attributed to a significant drop in the trading volumes of altcoins on exchanges, which are currently around 100 billion dollars, much lower than the 400 billion dollars recorded in December 2024.

Nevertheless, Alphractal argues that decreasing trading volumes will not necessarily hinder future price increases in altcoins. Historical trends show that, as seen in 2021, altcoins reached all-time highs even when trading volumes did not peak.

Alphractal CEO Joao Wedson stated that there is a need for new incentives in the cryptocurrency market. Wedson expressed that, unlike the peak enthusiasm in 2017 and 2021, the current market is facing slow growth and a lack of investor confidence. Wedson also identified the significant decline in investments in Web3 initiatives as an important factor contributing to this.

• 2021: 33 billion dollars worldwide
• 2022: Despite the "crypto winter", 7.1 billion dollars was raised and it signaled an early slowdown.
• 2023: A decrease of 74% compared to 2021, raising less than 7 billion dollars. According to Crunchbase, only 1.7 billion dollars were raised in the first quarter, the lowest amount since the end of 2020.

This decline in Web3 investments has surpassed the decline in the overall Venture Capital (VC) market, which experienced a 38% drop between 2021 and 2023.

Wedson pointed out a few key reasons for the stagnation in the market:

• The collapse of FTX and the resulting loss of trust in the sector.
• Regulatory uncertainties in the major cryptocurrency markets.
• The shift of investor focus to Artificial Intelligence, which attracted approximately 50 billion dollars in 2023.

Despite these challenges, Wedson remains optimistic about the potential for a resurgence in crypto investments. He believes that the convergence of artificial intelligence, cryptocurrencies, and gaming-themed coins could be the next major driving force for institutional capital.

Alphractal's latest observations indicate that Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Cardano (ADA) accumulated more long positions than short positions last week. This situation suggests to analysts that the market may experience higher volatility at the beginning of the next week.