According to Markus Thielen, head of research at 10xResearch, altcoins provide “tactical opportunities” but not the huge returns of past cycles.

According to cryptocurrency experts, the high-risk, high-reward philosophy of altcoins may be leaning towards the former since large gains are now less probable as a result of the weak narratives driving the market.

According to Markus Thielen, head of research at 10xResearch, “the era of 100x returns may well be behind us,” notwithstanding the tactical chances that still exist.

Despite market expectations of an altcoin bull market this year, he issued a warning, saying that “retail participation remains subdued and few new projects have emerged that captivate non-crypto-native traders.”

According to Thielen, previous cryptocurrency bull markets attracted more capital due to their “distinct characteristics,” but this cycle has seen “tighter capital, evidenced by low total value locked and a dearth of venture capital investments.”

The story that cryptocurrency might replace established financial systems was generally accepted in the last cycle, but this cycle’s narratives are more flimsy and have less evidence to support them, according to Thielen.

Earlier this week, trader Keith Gill uploaded a meme from his “Roaring Kitty” X account for the first time in almost three years. This caused the Solana-based meme coin GameStop (GME), which has nothing to do with the corporation that sells video games, to surge 2,727% along with GameStop’s stock price.

In a May 16 X post, Michael van de Poppe, the founder of MN Trading Consultancy, asserted that a portfolio consisting primarily of cryptocurrencies carries a “relatively huge” risk.

What drawbacks does this wager have? It is rather large. As of this writing, my entire investment has dropped by about 20% in just one to two weeks.

Van de Poppe revealed that he recently sold all of his Bitcoin BTC ($65,683) despite the risk involved.

to switch to cryptocurrencies, saying he “can lose 50-80%.”

Fabio Andreatta, a cryptocurrency investor, is dubious that there will even “be an alt season.”

In response to van de Poppe’s X post, Andreatta stated, “All you did is increase your risk.” It is highly improbable that you will surpass Bitcoin. The majority of altcoins will never again hit their ATHs.

The dominance of Bitcoin and its market share in comparison to other cryptocurrencies indicate that the market as a whole has moved money away from altcoins.

TradingView data shows that the dominance of Bitcoin is getting close to an all-time high for the year, currently at 56.05%, up 2.12% over the last seven days.