- Top analyst Michaël van de Poppe says altcoins are severely mispriced, setting the stage for a major bull run.
- Despite Ethereum ETF inflows and record-high staking, ETH remains 40% below its late 2024 price.
- Aave and Chainlink show strong fundamentals, but their prices continue to lag, creating strategic buying opportunities.
Top analyst Michaël van de Poppe says the altcoin market is set for a breakout as undervaluation gaps widen across Ethereum, Chainlink, and DeFi blue chips.
After nearly four years of severe underperformance, the altcoin market is flashing clear signs of a coming rebound. Michaël van de Poppe, CIO and founder of MN Trading, believes the worst may be over.
Altcoins Set for Major Upswing After Brutal Bear Cycle
In his latest analysis, he highlights how continued developer activity amid falling prices suggests severe mispricing across altcoins. He believes this dynamic creates a massive opportunity for patient investors.
Van de Poppe argues that the emotional nature of crypto markets leads to price inefficiencies, particularly in volatile assets like altcoins. These inefficiencies, or mispricings, often result in major drawdowns followed by explosive recoveries.
He compares this to traditional financial markets, where mispricing creates opportunities for arbitrage. He believes the same principle applies more heavily in the crypto market.
Related: From ETFs to New Tech, These Four Altcoins Have Major Catalysts Lined Up
Chainlink, Wormhole, and DeFi: Mispriced Despite Growth
Furthermore, Projects like Chainlink and Wormhole illustrate the current disconnect between the blockchain and the real world.
Despite a 60% drop in Chainlink’s price over the past six months, the project secured a major partnership with Mastercard. Meanwhile, the news had little to no effect on its market value.
Similarly, Wormhole is down 85% from its 2024 peak, even as it partners with Ripple, BlackRock, and other major institutions.
The DeFi sector is also showing substantial divergence between fundamental growth and token prices.
According to data from DeFiLlama, total value locked (TVL) in decentralized finance peaked at $131 billion at the end of 2024, but has since dipped only slightly to $110–115 billion. Yet key DeFi assets like Aave are down over 30–40% in value during the same period.
Ethereum Fundamentals Surge While Price Lags
Ethereum is another prime example. Over $1 billion flowed into the Ethereum ETF in recent weeks, driven in part by expectations of staking rewards.
Meanwhile, the amount of staked ETH hit a new all-time high of 35 million, up 20% from earlier in 2024. Still, ETH’s price remains 40% lower than late last year, signaling a substantial undervaluation gap.
Related: Vitalik Buterin: Ethereum Has Succeeded Beyond Anyone’s Expectations
Layer-2s, such as Optimism and Arbitrum, also exhibit mispricing. Optimism is down to $0.53 from its $2 high in December, despite maintaining its position as Ethereum’s leading L2. Arbitrum’s TVL continues to rise even as its token slides.
A Bull Market Built on Mispricing
Van de Poppe asserts that the ongoing mispricing in the market, caused by fear and negative sentiment, presents a strategic buying opportunity. While not all altcoins will recover, he sees clear upside in high-quality projects like Ethereum and Aave.
With supply tightening, staking rewards rising, and institutional money flowing in, the stage is set for an altcoin bull run.
According to Van de Poppe, the return to fair value is inevitable, and when sentiment flips, markets often overshoot to the upside. The time to build, he suggests, is now.
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