Selecting quality altcoins indeed requires consideration from multiple angles, especially in popular sectors such as public chains, MEME, AI, gaming, L2, and DeFi, where the performance differences among various projects can be significant.
Taking MEME as an example, established MEME coins like People, Doge, and Floki are all being speculated on, but their performance differences are obvious. People’s price increase is relatively small, while Doge and Floki have experienced crazy surges. The analysis of the reasons includes the following points:
1. Narrative and topicality: For instance, Doge gained enormous traffic and capital injection due to multiple mentions by Musk, leading to speculation and driving up the price. Similar examples can be seen with Floki, where the team's speculation and marketing strategies pushed up the coin's price.
2. Community and team operation: The activity level of the project's community and the team's operations are crucial. A strong community can foster sustained attention to the project, while the way the team operates, such as proactively generating topics and promoting project progress, can directly affect the coin's trajectory. For example, some projects rapidly expand to other platforms after being listed on major exchanges, which can drive up prices.
3. Support from market makers: Many projects can obtain strong support from market makers, which to some extent ensures the liquidity and stability of the project. For instance, some mainstream public chains like Solana (SOL) and Injective (INJ) have successfully emerged from the previous cycle and reached new highs, while some other projects have failed to maintain competitiveness.
In addition, the investment team is also a factor that cannot be ignored. Projects like Solana, Injective, Sui, Aptos, Omni, and Alt have the backing of globally recognized forex market makers like JUMP Capital, which provides strong support for their price increases and market recognition.
Speculating on cryptocurrencies should be rational; the direction of market capital flows and the preferences of large funds are the decisive factors. Relying solely on personal emotions and speculation often makes it difficult to achieve long-term success. Rationally choosing projects and understanding the funding and team support behind them is essential to stand out in a volatile market.
