Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
Crypto analyst Stockmoney Lizards highlighted five critical trends in the current altcoin cycle, offering insights into how investors can navigate an increasingly crowded market.
What Happened: The analyst acknowledges the overwhelming number of altcoins flooding the market, adding that the influx of new coins and scams makes it difficult for every coin to achieve significant price pumps, unlike in past cycles. "The money in the markets is flowing into a much higher number of cryptos than some years ago," thereby diluting potential gains.
The five trends he outlines are:
- Age of Coins: Newer coins, particularly those launched in 2022 or later, have emerged as significant winners in the current cycle. He pointed to coins like Injective (CRYPTO: INJ), Sui (CRYPTO: SUI), Render (CRYPTO: RNDR), and Fetch.ai (CRYPTO: FET) that have outperformed older altcoins such as Polygon (CRYPTO: MATIC), Cosmos (CRYPTO: ATOM) and Chainlink (CRYPTO: LINK).
TREND 1: AgeWe see that a lot of newer coins (ICO 2022 or newer) are amongst the massive winners.
INJ, SUI, RNDR, FET have outperformed older coins like MATIC, ATOM or LINK pic.twitter.com/G26GUQtkyB
— Stockmoney Lizards (@StockmoneyL) June 11, 2024
- Technological Superiority: He highlighted that the technology behind cryptos matters, emphasizing speed, security, and use cases as crucial factors. Solana (CRYPTO: SOL) is a crypto example of a winning technology due to its speed and scalability.
- Narrative-Driven Markets: While trends may shift, current winning narratives include AI and meme coins. Stockmoney Lizards warned, "With meme coins, it’s pure gambling, but there are some decent AI projects." He emphasized that strong tokenomics, technology, and chart patterns should precede trendy narratives when picking investments.
- Fundamental Analysis: With daily pumps and dumps, thorough analysis becomes crucial. Tokenomics, inflation, max supply and use cases are integral.
- Practical Use Cases: Fundamental usefulness matters. Stockmoney Lizards highlighted practical use cases like Ethereum (CRYPTO: ETH) for swapping coins, Solana for meme coins, and Uniswap (CRYPTO: UNI) as a leading DeFi platform. "Base is the next hype," he hinted, implying future market opportunities.
Also Read: Ethereum And Altcoins May ‘Quickly Rebound’ After FOMC Meeting, Trader Predicts
Why It Matters: Stockmoney Lizards noted that the traditional flow from Bitcoin to smaller caps may not hold this cycle, making it vital to prioritize robust fundamentals and strong technical charts. He adds that as "the chart tells you everything you need to know" it is important to focus on technology and tokenomics.
Heavily followed crypto trader Miles Deutscher highlighted that Bitcoin is 9% away from highs, while altcoins are 80% away from their highs.
This image sums up the current state of the market perfectly.• $BTC is 9% away from highs.
• Altcoins are 80% away from highs
From the lows:
• BTC ran 373%
• Alts ran 176%
If you're wondering why sentiment is so poor (relative to the price of BTC), here's your answer. pic.twitter.com/nYCu3oSklf
— Miles Deutscher (@milesdeutscher) June 12, 2024
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Top Crypto Analyst Shuffles Altcoin Portfolio Before Ethereum ETF: Here’s What He Rotated Into
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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