Recently, significant movements have been observed in altcoins supported by major venture investors and launched with high valuations. This situation could signal a new trend in the cryptocurrency market.
The Rise of VC-Backed Altcoins
According to analyst Miles Deutscher, the main reason for this movement is that many of these altcoins have significantly depreciated. These altcoins, which have fallen by 80-90%, can experience substantial price increases with positive news while changing hands at highly discounted prices. This situation is more pronounced in altcoins that faced significant selling pressure during their initial sales periods. The cryptocurrency market tends to follow certain cycles historically. Although this cycle is not identical to previous ones, the principles are generally similar. What is different in the current cycle compared to previous ones is the increased importance of selecting the right assets. Deutscher emphasized that it is no longer sufficient to catch the market at the right time; selecting the right altcoins to invest in is critical.
Analyst Exemplifies Altcoins in This Context
Deutscher noted that Saga has emerged as a standout example, breaking away from recent trends. Additionally, he mentioned that altcoins like StarkNet, Ena, and Wormhole could offer potential investment opportunities when acquired at low valuations. These altcoins have experienced significant unlocking, making them attractive for investment.
New Altcoin Projects
StarkNet has emerged as a Layer-2 scaling solution for Ethereum and has a lower valuation compared to competitors like Arbitrum and Optimism. This means it could present an attractive buying opportunity. Initia, Bearer Chain, and Zero Gravity are new altcoin projects that Deutscher highlighted. He stated that these projects could be launched at low valuations and, if they exceed expectations, could bring high returns to investors.
Description of changes in VC-backed altcoins helps outline a new trend in the cryptocurrency market. Selecting the right assets becomes critically important when investing in the current cycle.
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