Crypto VC Up 1,000x on Bitcoin Says Altcoin Season Is Entering Its Next Phase

After a tumultuous week that saw crypto markets reel following the Federal Reserve’s hawkish outlook, one voice in the crypto VC world is pointing to brighter days ahead.

Cosmo Jiang, portfolio manager at Pantera Capital — which just celebrated an eye-popping 1,000x return on its original Bitcoin fund — joined Coinage to share his insights on where the market stands and why he believes altcoin season is officially underway.

Reflecting on the recent market volatility, Jiang provided a clear perspective on the forces at play. “It became pretty clear that the Fed governors… are a lot more concerned about inflation staying higher for longer,” Jiang explained. But fewer rate cuts in 2025 isn't necessarily a cause for panic — particularly when it comes to the beginning of non-Bitcoin cryptocurrencies playing catchup.

Jiang, also a Coinage Network NFT holder, is cited as one of the leading fundamental investors in crypto. Where he sees potential is generally worth a closer look. As Coinage has highlighted, Jiang's bets at Pantera have proved prescient. Pantera's largest-ever investment in TON has played out nicely as the Telegram-linked coin enjoys a more than 100% rally this year. Now, Jiang sees other opportunities emerging.

“In these cycles, Bitcoin is the first to really perform… It’s really in that second phase though, when everything else, or what we call longer-tail tokens, really start to outperform,” he said. Highlighting the fundamental drivers of this dynamic, Jiang explained, “On the supply side… there’s more things to invest in and to get excited about. And on the demand side, now that investors have made a good amount of money on Bitcoin hitting new highs, they’re more comfortable seeking out these… potentially higher growth tokens.”

One of the most telling metrics investors track is Bitcoin dominance, which measures Bitcoin’s share of the total crypto market cap. “Post-election, Bitcoin dominance… declined from 60 to 54 at some point,” he noted. “Nearly ten points of relative outperformance by everything else.” For Jiang, this signals the early stages of a broader shift, as capital flows into altcoins gain momentum.

Among the altcoins, Jiang spotlighted Solana as particularly noteworthy. “When we talk to… large bank wirehouses… 90, 95% of their conversations are about Bitcoin. But the next most talked about token is Solana,” he observed. This growing institutional interest underscores the project’s progress and potential. “People are aware of what stuff is working, where the growth is. And people just want to buy assets that represent tokens that represent protocols that are growing and doing very well,” Jiang said. Notably, Solana is a finalist in Coinage's Crypto Project of the Year.

Looking beyond individual tokens, Jiang expressed excitement about broader innovation within the blockchain space. “You’re seeing users, transaction activity really skyrocketing on Solana, on Ton,” he shared. Additionally, he highlighted emerging trends in decentralized physical infrastructure (DePIN) and AI, calling them “two areas that really take up all my brain space today.” Projects like Helium, Hivemapper, and GEODNET have found real-world use cases, attracting partnerships with major corporations and even government entities. “Crypto is creating a better product at a cheaper price,” Jiang said, describing the unique value proposition of these protocols.

Amid the optimism, Jiang acknowledged the challenges and volatility that still characterize the space. “On a short-term timeframe… things can get crazy,” he said, pointing to recent leverage washouts and unpredictable market moves. However, his longer-term outlook remains steadfastly positive. “If you think about the three major tailwinds that we have going into next year… regulatory clarity, capital flows, and fundamentals… on a medium to long term, I’m just so, so excited about where we are.”

As the crypto market continues to evolve, Jiang’s insights highlight the importance of zooming out and focusing on the bigger picture. With altcoin season heating up and innovation accelerating, the next phase of growth could be just around the corner. For Jiang, the key takeaway is clear: “We are still in such early innings.”

Coinage members can watch our full interview with Pantera PM Cosmo Jiang above. To support our community-owned outlet, own it with us, and unlock other exclusive benefits, mint one of our Membership Passes today or Stake with us today! Chat with Coinage in our Discord.