According to Camilla McFarland (@camillionaire_m), the evolution of crypto venture capital has undergone significant changes, moving from early-stage experimentation in decentralized finance (DeFi) to a focus on infrastructure, layer 2 solutions, and regulatory-compliant projects (Source: Twitter, May 28, 2025). This shift has led to increased capital inflows, driving volatility and liquidity across major cryptocurrencies such as Bitcoin and Ethereum. Traders should monitor venture-backed tokens and infrastructure projects for potential price action, as VC funding trends continue to shape market sentiment and trading opportunities.

According to Crypto Rover, Bitcoin dominance is breaking down, suggesting a bullish outlook for altcoins in the current market cycle (source: Crypto Rover on Twitter, May 11, 2025). This shift typically indicates that capital is rotating from Bitcoin to alternative cryptocurrencies, which could lead to increased volatility and trading opportunities in top altcoin sectors such as DeFi, Layer 2, and AI tokens. Traders are advised to monitor altcoin trading volumes and price action closely, as historical data shows altcoins tend to outperform when Bitcoin dominance declines.

According to Milk Road, Base now holds 55% of all active addresses on Layer 2 networks, surpassing the combined total of other major L2s (source: Milk Road, April 27, 2025). This significant user activity suggests growing network utility and transaction volume, which could drive increased liquidity and trading opportunities on Base-related tokens. Traders should monitor on-chain activity and price trends for Base-native assets and related DeFi protocols, as rising address activity often precedes heightened market volatility and potential price movements.