Recently, there has been a surge in VC (Venture Capital) altcoins, which are often launched with some major backing and higher valuations. These coins have started to move significantly, hinting at a potential trend in the market.
Key Reasons for Growth
According to analyst Miles Deutscher, a key reason for these movements is that many of these coins were heavily beaten down, with declines of 80-90%. Once a coin is so deeply discounted, even small positive news can lead to substantial price increases. This can be particularly true for coins that have had steep initial sell-offs. Historically, the cryptocurrency market tends to follow certain cycles. While this cycle isn’t exactly the same as past ones, the principles remain similar. The main difference now is the need for detailed asset selection. Simply timing the market isn’t enough; choosing the right coins to invest in is crucial.
Existing Altcoins with Potential
Saga is one example, which recently broke out of its trend. Apart from that, the list includes coins like StarkNet, Ena, and Wormhole. These coins have potential if bought at lower valuations. They’ve seen significant unlocks already and may offer good investment opportunities. StarkNet is a layer-2 scaling solution for Ethereum that is currently valued below some of its peers like Arbitrum and Optimism. Its lower valuation could present an attractive buying opportunity.
Promising New Projects
Watch for new projects like Initia, Bearer Chain, and Zero Gravity. These projects might launch at undervalued prices, offering potential for gains if they outperform expectations.
The current market cycle places a premium on choosing the right assets rather than just timing your investments. Unlike previous cycles where many altcoins surged simultaneously, this cycle is marked by a more selective approach.
Comments