Altcoins
Major Altcoins Set to Outperform This Week as Crypto Bull Run Begins
In a recent video by Crypto Banter, the focus was on the changing dynamics of altcoin investing, particularly the problematic role that venture capital plays in launching new tokens. The discussion highlighted how venture capitalists often inflate the valuations of cryptocurrencies, making new tokens less attractive to retail investors.
The video also provided insight into promising altcoins that could do well, particularly if the Ethereum ETF is refused.
Understanding the influence of venture capital
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 over $1 billion before retail investors can buy them, leading to higher prices and significant losses for retail investors. StarkNet is a great example: it fell 74% after hitting a $1 billion valuation due to low buyer interest.
High-Circulation Altcoins: Why They Are Good Choices
To counter these VC-induced risks, Crypto Banter recommends several altcoins with high market cap to fully diluted valuation (FDV) ratios. Most of the supply of these tokens is already in circulation, reducing the risk of a sudden surge in supply and making them likely to perform well, especially if the Ethereum ETF is rejected.
Solana (SOL)
With 78% of its tokens in circulation and a growing ecosystem, Solana is a safe bet thanks to its extensive technical base.
Near Protocol (NEAR)
Near Protocol is another solid option, with 90% of its tokens in circulation, minimizing the risk of value declines due to new token releases.
Ghost (FTM)
Fantom stands out for its recent Sonic upgrade, turning it into a high-speed sidechain for Ethereum. With most of its tokens already in circulation, it presents a promising investment opportunity.
Injective (INJ)
Injective stands out for its innovation and market positioning. It’s a good choice for investors looking to avoid projects dominated by venture capital.
Avalanche (AVAX)
Avalanche is a stable 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.
Weaving of Ar (AR)
Arweave is particularly attractive since 100% of its tokens are already on the market. Its recent outperformance compared to Filecoin underlines its potential.
Polka dot (POINT)
With 94% of its tokens in circulation, Polkadot offers an attractive investment, especially with its recent technological upgrades.
Why you need a good strategy
For investors navigating the altcoin market amid venture-dominated projects, it is essential 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 as promising opportunities that minimize the risks associated with venture capital influence.
Also discover: Top Altcoins to Watch Closely Amid Hype Over Spot Ethereum (ETH) ETF Approval
Do you agree with Crypto Banter’s choices? Let us know which altcoins you are watching.