After the release of CPI data, liquidity expectations in the crypto market have improved. In addition to the rebound of mainstream coins, the altcoin market has also become noticeably active. Here are a few trends currently worth noting in the altcoin market:
1. Capital Flow: Small-cap coins benefit
As market risk appetite rises, some small-cap altcoins have become targets for short-term investors. These coins tend to have high price volatility, but also more significant potential for gains. Investors usually prioritize coins that are ecologically active or have recent news.
2. Performance of Popular Ecosystem Sectors
• Layer 2 projects: Tokens related to Arbitrum and Optimism often outperform the mainstream market during bull markets due to their scalability and low-cost solutions.
• AI & Web3 track: The momentum of OpenAI continues, and AI + blockchain projects are receiving much attention. Projects involving AI data and decentralized computing are attracting more funding, such as FET (Fetch.AI) and OCEAN (Ocean Protocol).
• Gaming and Metaverse: The success of Axie Infinity has brought similar projects back into focus, particularly Gala and IMX.
3. Risks and Opportunities of Altcoins
Advantages:
• Fast rebound speed, high returns.
• The market is sensitive to new concepts and trends, and can explode with capital momentum.
Risks:
• Easily influenced by market sentiment, with significant retracement potential.
• Illiquid altcoins may quickly lose attention when the hype ends.
4. Strategic Recommendations
• Short-term opportunities: Focus on hot sectors with strong capital inflows, especially projects with real application scenarios and development progress.
• Long-term selections: Prefer altcoins with technical strength and community support, such as some second-tier public chains (Solana, Avalanche) and Ethereum competitors.
• Position management: Control total investment amount, avoid over-investing in a single altcoin, and diversify risks.
