As the Crypto Assets market heats up again, many investors are starting to follow the opportunities in alts. However, the current market environment is different from that of 2021, and blind investment may lead to the risk of catching a falling knife at high levels. This article will analyze the key factors to consider when choosing to invest in altcoins.

Firstly, the popularity and narrative of a project, while not equivalent to its technical strength, play an important role in the current market. Hot areas such as artificial intelligence, meme coins, decentralized physical infrastructure networks (DePIN), and real-world assets (RWA) may attract attention and be sought after due to label effects and social media visibility, even if the projects have not yet launched specific products. This reminds us that while we should not blindly follow trends, we must also be aware of the importance of market sentiment.

Secondly, the actual data growth of the project is the true indicator of capital inflow. Investors should follow the following aspects: whether the Total Value Locked (TVL) has increased, whether the number of users and transaction fees have risen, and whether the project's discussion level has improved. These indicators can reflect the project's activity and development potential. It is recommended to use tools like DeFiLlama and Token Terminal to analyze this data.

Furthermore, understanding the token economics model is crucial to avoiding investment traps. Some tokens may rise rapidly in the short term, but due to factors such as unlocking mechanisms, they may soon face significant corrections. Investors need to have a deep understanding of the token's issuance, distribution, and unlocking plans to assess its long-term holding value.

Overall, in the current market environment, choosing to invest in alts requires more cautious and comprehensive consideration. By analyzing project popularity, actual data performance, and token economics models, investors can better identify potential quality projects and reduce investment risks. Remember, a successful investment strategy not only needs to grasp market hotspots but also requires a deep understanding of the essence of the projects and their long-term development prospects.