After such a long bear market, we are finally approaching a major breakout of the altcoin market, brought on by huge undervaluation among many top altcoins. According to Michaël van de Poppe, CIO and founder of MN Trading, altcoins have really, really crashed over the past couple of years. This confluence has opened a once-in-a-generation window for smart money to pounce. A possible flood is coming down the pipe. This increase is due to the accumulation of the difference between the inherent worth of digital assets and their market price.

Ethereum—and blue chip DeFis—and Chainlink, too, are showing very large and widening undervaluation gaps. This indicates that their market valuations are poorly capturing their intrinsic value and future growth opportunities.

Nowhere is this divergence more evident than in the rapidly evolving DeFi sector. The total value locked (TVL) in decentralized finance hit its all-time high of $131 billion at the end of 2024. Even with this expansion, many DeFi tokens have massively flopped. Average has tanked 30–40% in value over the same period. This steep recent decline shows the growing disconnect between crypto market performance and the fundamentals, including as TVL reached an all-time high.

Chainlink may have recently landed a historic partnership deal inking its technology to Mastercard yet at the same time, LINK’s price stumbles 60% these last six months. Likewise, Wormhole, despite everything and even after they teamed up with Ripple and BlackRock, is 85% off its 2024 high. These examples highlight the major undervaluation across the altcoin market, making it one of the best cases for a breakout in the bunch.

This sheer undervaluation of altcoins represents a massive opportunity for latecomers to invest. As the market starts to understand the actual value of these assets, a dramatic upward correction is expected.