The Surge in MYX and WLD: Can Altcoin Momentum Outlast ETF Outflows?

The crypto market in Q3 2025 has been a study in contrasts. While Bitcoin ETFs faced a $162 million outflow on September 5—the second consecutive day of withdrawals—Ethereum ETFs attracted $1.56 billion in inflows, signaling a shift in institutional capital. Altcoins, meanwhile, showed a mixed but notable resilience, with net inflows of $155.6 million into non-Ethereum ETPs. This divergence raises a critical question for contrarian investors: Can altcoins like Myriade (MYX) and Worldcoin (WLD), which have defied the broader market's caution, sustain their momentum in a macroeconomic environment still reeling from Fed policy uncertainty and geopolitical risks?

The Macro Context: Dovish Pivots and Risk-On Rotation

The U.S. Federal Reserve's pivot toward rate cuts, hinted at during Jerome Powell's Jackson Hole speech, has created a fragile tailwind for risk assets. Bitcoin's 40% average correlation to the S&P 500 over five years underscores how macroeconomic shifts—such as weak July jobs data or inflation surprises—continue to dominate crypto sentiment. However, Ethereum's ETF inflows ($4 billion in Q3 2025) and altcoin market cap growth to $1.5–$1.7 trillion suggest a broader rotation into assets perceived as “less crowded” than Bitcoin.

This rotation is not without contradictions. Bitcoin's dominance dipped to 58.85% in early September, yet institutional investors like Metaplanet and Strategy continued accumulating BTC, citing its role as a hard asset during macroeconomic uncertainty. The tension between Bitcoin's safe-haven appeal and altcoins' speculative allure defines the current landscape—a tension that MYX and WLD have exploited.

MYX: A Short-Squeeze-Driven Surge

Myriade (MYX) surged 90% in Q3 2025, fueled by a combination of high trading volume and a negative funding rate of -1%, which triggered a short squeeze. While specific use cases for MYX remain opaque, its performance aligns with broader trends in AI-driven Web3 innovations and institutional-grade investment platforms. This raises a contrarian question: Is MYX's rally a function of speculative momentum rather than fundamentals?

The risks are clear. A negative funding rate typically indicates bearish sentiment in perpetual futures markets, yet MYX's price action suggests traders are betting on a reversal. For investors, this duality—high volume vs. unclear utility—demands caution. However, in a market where ETF outflows have created liquidity imbalances, tokens with strong short-term technicals may still attract capital fleeing overhyped Bitcoin.

WLD: Institutional Backing and Biometric Risks

Worldcoin (WLD) offers a more nuanced case. Its 42–122% surge in September 2025 was driven by Eightco Holdings' $250 million treasury strategy, which positioned WLD as a reserve asset and attracted backing from BitMine and figures like Dan Alves and Tom Lee. The token's real-world utility—16 million Proof-of-Human identifications across 45 countries—and partnerships with Match Group and Razer further justify its appeal.

Yet WLD's momentum is not without headwinds. Regulatory scrutiny in China and Germany over biometric data collection and technical indicators like an overbought RSI (83.94) suggest volatility ahead. For contrarians, WLD's institutional adoption and Ethereum-based ecosystem integration present a compelling case: If the Fed's rate cuts materialize, WLD's real-world use cases could insulate it from broader market jitters.

ETF Outflows: A Tailwind or Headwind?

The $162 million Bitcoin ETF outflow on September 5 and Ethereum's $912 million ETF outflow highlight a fragmented institutional landscape. While Bitcoin's dominance ticked back up to 58.85%, the altcoin market cap's temporary rise to $1.64 trillion shows that risk appetite remains alive—particularly for tokens with clear narratives.

The key for contrarians lies in disentangling noise from signal. For example, Solana's network revenue surpassing Bitcoin and XRP's futures volume highs indicate that capital is rotating into altcoins with tangible upgrades (e.g., Layer-2 scaling, DeFi growth). MYX and WLD, despite their divergent fundamentals, both benefit from this trend.

Conclusion: Contrarian Picks in a Cautious World

The Q3 2025 market is a microcosm of crypto's enduring paradox: macroeconomic caution coexists with altcoin optimism. For investors willing to navigate the volatility, MYX and WLD represent two distinct paths. MYX's short-squeeze-driven rally is a high-risk, high-reward bet on liquidity imbalances, while WLD's institutional adoption and real-world utility offer a more defensible case—provided regulatory risks abate.

As the Fed's rate-cut timeline crystallizes and ETF flows continue to diverge, the ability to distinguish between speculative hype and sustainable innovation will define success. In a market where Bitcoin's dominance wavers and Ethereum's ETF inflows surge, altcoins with clear use cases and institutional backing—like WLD—may outlast the ETF outflows. But for MYX, the question remains: Is this a fleeting spark or a new flame?