Will the #Altcoins Make a Comeback?

I think so.
And I also don’t think so.
Like any cycle, most altcoins that existed from the previous cycle will not return.
Some flawed systems, such as buybacks, have been used to inflate the prices of those tokens, or the prices of the tokens themselves have been artificially kept high or supported by venture capital rounds before listing.
I believe this has changed, meaning you are now seeing many altcoins with real revenue and genuine ecosystem growth beginning to attract attention.
In this context, I expect to see leading altcoins perform well, which means liquidity will be concentrated (even more) into a select few #Altcoins that outperform the rest of the market.
I see no reason why all altcoins would suddenly perform well in the near future, as there is currently no confidence at all.
They might reverse course and bounce back, but again, you might be better off holding Bitcoin or seeking out altcoins with “better performance” that are delivering higher alpha and beta returns.
For altcoins to truly outperform, you need two main principles:

  • Bitcoin surpassing $100,000
  • Ethereum outperforming Bitcoin.
    If neither of these performs well, there’s no reason to heavily invest in altcoins.
    “So why are you still holding all your capital in altcoins?”
    I am making big bets on assets I believe will converge in the Artificial Intelligence <> Cryptocurrency space and generate higher alpha and beta returns.
    These are the largest parts of my portfolio, and I will sell them when people start discussing them again.
    On the other hand, the other altcoins I hold are currently at very low prices (and they could go lower), but their asymmetric upside potential is significant.
    Although there won’t be a strong bull run, I still want to capture the market’s average beta coefficient that I expect to occur in the next 1-2 months.
BTC2.72%
ETH3.75%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin