Pseudonymous crypto trader Daan Crypto Trades stated in a Dec. 28 post on X that the TOTAL3—the total market cap of all cryptocurrencies excluding Bitcoin and Ether—needs to surpass its 2021 all-time high of $1.13 trillion and enter price discovery for the “euphoria” or “mania” phase to start.

The Importance of TOTAL3

According to TradingView data, TOTAL3 is currently at $962.78 billion, showing an approximate 91.45% increase since the beginning of the year. However, Daan warned that if the market cap falls below $800 billion, a more cautious approach is necessary.

Daan added, “As long as this trades between ~$840B and ~$1.1T, I think it will be choppy.”

Short-Term Thinking Increases Market Volatility

Some analysts believe that the increasing volatility in the crypto market is due to traders adopting a more short-term perspective compared to previous years.

Syncracy Capital co-founder Daniel Cheung mentioned in a Dec. 28 post on X:

“Everyone decided they were George Soros all of a sudden this cycle, constantly monitoring hourly charts to time entries/exits and playing with leverage.”

Cheung argued that this is why crypto tokens have not experienced breakouts as quickly as in prior cycles.

Traders Begin Rotating Toward Altcoins

According to CoinMarketCap data, the top three gainers among the top 100 cryptocurrencies over the past seven days are:

• Bitget Token (BGB): Up 80.65%
• Virtuals Protocol (VIRTUAL): Up 42.30%
• Pudgy Penguins (PENGU): Up 31.63%

Meanwhile, with Bitcoin dominance nearing 60% in the final days of 2024, some traders believe it is time to shift their accumulation strategies toward altcoins.

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