Altcoins
Top Altcoins Set to Outperform This Week as Crypto Bull Run Begins
In a recent Crypto Banter video, the focus was on the changing dynamics of altcoin investments, particularly the problematic role of venture capital (VC) in launching new tokens. He became more interested in how venture capital firms often inflate cryptocurrency valuations, making new tokens less attractive to retail investors. Additionally, it provided insight into promising altcoins that could outperform, particularly if the Ethereum ETF is refused.
Issues with VC-backed tokens
Crypto Banter criticized venture capitalists for driving up the valuation of tokens before they hit the market. Previously, the new tokens raised funds at a valuation of $20-30 million. Today, they are valued at more than $1 billion before retail investors can buy them. This means that retail investors often pay a premium and then suffer heavy losses. StarkNet is an example of this: its value fell 74% after reaching $1 billion due to low buyer interest.
Best Altcoin Picks
To counter the risks posed by these venture capital practices, it recommends several altcoins with high market capitalization relative to fully diluted valuation (FDV) ratios. This means that most of their tokens are already in circulation, reducing the risk of a sudden increase in supply. These tokens will likely perform well, especially if the Ethereum ETF is denied.
Solana (SOL)
Solana’s token circulation is 78% and growing. This is a high-conviction bet due to the extensive ecosystem and technical base.
Near protocol (NEAR)
Another good option is Near Protocol, which has 90% of its tokens in circulation. High circulation reduces the drop in token release value.
Ghost (FTM)
Fantom is particularly notable due to its recent Sonic upgrade, turning it into a high-speed sidechain for Ethereum. With most of its tokens in circulation, it presents a promising investment opportunity.
Injective (INJ)
Injective stands out for its innovation and market position. Investors who want to avoid projects dominated by venture capital may consider it.
Avalanche (AVAX)
Avalanche is a stable cryptocurrency investment due to its large market size and high proportion of tokens in circulation.
BNB (BNB)
While not traditionally a top pick, BNB’s technical chart shows promising uptrends, making it a potential buy.
Arweave (AR)
Arweave is particularly attractive since 100% of its tokens are already on the market. Its recent outperformance against Filecoin highlights its potential.
Polka dot (DOT)
With 94% of its tokens in circulation, Polkadot offers an attractive investment, especially with its recent technological upgrades.
Conclusion
It is crucial for investors looking to navigate the altcoin market amid venture-dominated projects to focus on tokens with high circulation and strong fundamentals. Crypto Banter highlights tokens such as Solana, Near Protocol, Fantom, Injective, Avalanche, BNB, Arweave and Polkadot that offer promising opportunities while minimizing the risks associated with venture capital influence.
Also discover: Top Altcoins to Watch Closely Amid Hype Over Spot Ethereum (ETH) ETF Approval