The pullback in the past few days is actually very normal, giving us the opportunity to reap the last wave of dividends. As for those online comments that 95% of altcoins will increase 10 times, these are completely the views of some newcomers or immature markets.
Most of the altcoins actually have no spring.
The cryptocurrency industry is updating and iterating very quickly, and not all altcoins can usher in a period of explosive growth. On the contrary, many altcoins are destined to disappear or remain depressed for a long time. Therefore, for some projects with fundamental problems, I often remind everyone in the circle: stop when you are ahead, and don't be carried away by emotions.
What to do now?
The current focus should be to buy the valuable coins at the bottom and wait patiently for the entry of large funds such as the Federal Reserve to drive the market. Especially if the value coins have a pullback, which can lower your average price, then boldly increase your position, the opportunity is here.
In short, the market fluctuates greatly, but it is important to remember that in a bull market, not all coins will rise. Only those with solid fundamentals and real potential will stand out.
Regarding altcoins, today we will talk about some issues that everyone may be concerned about.
1. Why isn’t there a big explosion of altcoins like in 2021?
In fact, 2021 is a period when the Federal Reserve continues to release money, and the market is flooded with a lot of hot money, so the market of altcoins is very hot. Now, although interest rates have begun to decline, it will take some time before large-scale money is released. However, compared with the beginning of the year, liquidity has improved, and the subsequent market is still worth looking forward to.
It should be noted that the general rise of altcoins in 2021 mostly occurred in the first half of the year, while the second half was mainly concentrated in several popular tracks, and the performance of many currencies was not outstanding. Therefore, it becomes particularly important to choose a good project.
2. How to choose high-quality altcoins?
Regarding how to choose altcoins, we still need to pay attention to several popular tracks, such as public chains, MEME, AI, games, L2, DeFi, etc. However, there are also big differences between projects in the same track. For example, in the MEME track, although People, Doge, and Floki are all old projects, the increase of People is relatively small, while Doge and Floki have skyrocketed. Why is this so?
On the one hand, there is a difference in narrative: for example, Doge was influenced by Musk, and had a large amount of traffic and capital injection, so the market hype was naturally high and the price also rose accordingly.
On the other hand, it is the team operation: For example, Doge's community team will take the initiative to promote the progress of the project. After listing on Binance, it has expanded to other platforms, such as CB, Bithumb, Upbit, etc. Coupled with the support of strong market makers, the valuation and growth of the project will have greater potential.
This rule applies not only to the MEME track, but also to public chains, DeFi, games and other projects. After all, no matter what coin is hyped, traffic and funds are crucial.
Speaking of public chains, we must remember that not all public chain projects can become popular. For example, projects such as SOL and INJ survived and set new highs, but what about others?
In addition, another important point is the investment team. Some of the projects I mentioned in my previous tweets, such as Omni, Alt, Sol, INJ, SUI, APT, etc., have almost all received investment from JUMP. JUMP is a world-renowned foreign exchange market maker, and its vision for investment projects is very unique. The increase in SOL, SUI and INJ also proves this.
Investment reminder: Altcoins fluctuate greatly, and investors need to pay attention to risks.
3. Why am I optimistic about BAN, CAT, and KOMA?
Let's talk about BAN first. The market popularity of this coin is very high. OKEX is also promoting "Banana Coin". There is a banana logo on Musk's rocket. Sun Ge also bought Banana Coin. There are also many people in the community promoting it, and the media also frequently discuss this project. The potential of a project with strong market popularity and community power should not be underestimated.
As for CAT and KOMA, BNB recently launched Karken, which has actually been recognized by traditional capital. Although Karken is not a big name, it is at the same level as Coinbase and Robinhood. The opening of BNB is equivalent to the opening of the BSC chain, which means that more people will pay attention to projects on BSC in the future. CAT itself has a certain degree of popularity, especially on YouTube, Facebook, and TikTok, with a playback volume of up to 4 billion times. Currently, the BN wallet still holds 5% of the tokens. From a market perspective, KOMA is very popular, and its market value is still very low, only 50 million. You can compare it with ACT. At that time, the market value of ACT was only 22 million. Later, after it was listed on BNB, its market value doubled 12 times. Coins with low market value, high popularity and continuous increase like this are generally very popular.
Recently, many dog coins have performed well, such as GOUT, which has increased more than 40 times in more than ten days. Although the opportunities in the primary market are great, there are also more traps and it is more suitable for small capital operations.
Finally, I would like to remind you not to just see others making money, as there are many people losing money behind the scenes. It is recommended that large funds stay in the secondary market, after all, it is more stable. Recently, the performance of blockchain games and second-layer networks is also good, so you can pay attention to it.
These are some of my recent observations and thoughts on the altcoin market. If you have a deeper understanding, please continue to communicate!
