Altcoin
Top Altcoins are set to outperform this week as the Crypto Bull Run begins
In a recent Crypto Banter video, the focus was on the changing dynamics of altcoin investing, specifically the problematic role of venture capital (VC) in launching new tokens. He became more interested in how VCs often inflate cryptocurrency valuations, making new tokens less attractive to retail investors. Additionally, he provided insights into promising altcoins that could outperform, particularly if the Ethereum ETF is denied.
Issues with VC-backed tokens
Crypto Banter criticized venture capitalists for driving up token valuations before they hit the market. Previously, new tokens raised funds at valuations of $20-30 million. Now, they are worth more than $1 billion before retail investors can buy them. This means that retail investors often pay a premium and later suffer large losses. StarkNet is an example: it collapsed 74% after reaching $1 billion in value due to lack of interest from buyers.
Top Altcoin Picks
To counter the risks posed by these VC practices, he recommends several altcoins with large market caps at fully diluted valuation (FDV) ratios. This means that most of their tokens are already in circulation, reducing the risk of sudden supply increases. These tokens will likely perform well, especially if the Ethereum ETF is denied.
Solana (SOL)
Solana token circulation is 78% and growing. It is a high-conviction bet thanks to the broad 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.
Fantom (FTM)
Fantom is particularly notable for its recent Sonic update, turning it into a high-speed sidechain for Ethereum. With most of its tokens in circulation, it represents a promising investment opportunity.
Injective (INJ)
Injective stands out for innovation and market positioning. Investors who want to avoid VC-dominated projects can consider it.
Avalanche (AVAX)
Avalanche is a stable cryptocurrency investment due to its large market size and high percentage of circulating tokens.
BNB (BNB)
While not traditionally a top pick, BNB’s technical chart shows promising upward trends, making it a potential buy.
Arweave (AR)
Arweave is particularly interesting since 100% of its tokens are already on the market. Its recent outperformance versus Filecoin highlights its potential.
Polka dot (DOT)
With 94% of its tokens in circulation, Polkadot offers an attractive investment, especially with its recent technology upgrades.
Conclusion
Focusing on tokens with high circulation and solid fundamentals is crucial for investors trying to navigate the altcoin market amid VC-dominated projects. 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 VC influence.
Also check: Top altcoins to watch amid hype over Spot Ethereum ETF (ETH) approval