Markets
Identifying the Strongest Altcoins During the Crypto Market Crisis
Analyst Miles Deutscher recently revealed that retail investors are losing faith in the launch of new tokens with high valuations and poor airdrop execution, leading to a preference for purchasing tokens with better liquidity in the public market. The analyst said recent projects have had lower public market valuations compared to private market valuations, suggesting the era of easy venture capital gains may be coming to an end.
In these times, how to identify potential projects? The analyst responded and said that it is possible to look for projects with a well-defined narrative and leadership in their sectors, such as real world assets (RWA), artificial intelligence (AI) or games. A strong narrative is essential for market positioning.
Projects must have a clear differentiator. This could mean innovative technology, unique features or significant improvements over existing products. Avoid investing in redundant projects, such as launching the tenth Layer Two in a month, unless they offer substantial advances.
Look for tokens that offer additional utility beyond governance, such as buybacks, burns, and attractive staking rewards. These mechanisms can reduce circulating supply and increase price appreciation, which in turn promotes community building.
A strong and engaged community often follows price appreciation. Community building can also be driven by valuing community contribution, embracing crypto culture, and being memorable rather than overly corporate.
He advised people to prefer tokens with low inflation. This could mean that a high percentage of the token supply is already circulating or that the inflation rate is low during the trading window. Low inflation helps maintain price stability. For example, tokens like Ono, with very low fluctuation and minimal short-term inflation, have shown strong performance.
Ondo is cited as an example of success due to its extremely low circulating supply and minimal inflation, which has contributed to its recent price increase. He suggests other projects could adopt a similar model, avoiding large initial airdrops to control supply pressure.
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