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Top Altcoins are set to outperform this week as the Crypto Bull Run begins
In a recent Crypto Banter video, the focus was on the evolving dynamics of altcoin investing, specifically the problematic role that venture capital (VC) plays in launching new tokens. The discussion highlighted how VCs often inflate cryptocurrency valuations, making the new tokens less attractive to retail investors.
The video also provided insights into promising altcoins that could perform well, particularly if the Ethereum ETF is denied.
Understanding the influence of VC
Crypto Banter has criticized venture capitalists for driving up token valuations before they reach the market. Previously, new tokens raised funds at valuations of $20-30 million. Now, they are valued at over $1 billion before retail investors can purchase them, leading to premium prices and significant losses for retail investors. StarkNet is a great example: it fell 74% after reaching a $1 billion valuation due to low buyer interest.
Highly circulating altcoins: why they are a good choice
To counter these venture capital-induced risks, Crypto Banter recommends several altcoins with high market capitalization and fully diluted valuation (FDV) ratios. Most of the supply of these tokens is already in circulation, thus reducing the risk of sudden supply increases and increasing the chances that they will perform well, especially if the Ethereum ETF is denied.
Solana (SOL)
With 78% of its tokens in circulation and a growing ecosystem, Solana is a strong bet thanks to its broad technical base.
Near Protocol (NEAR)
Near Protocol is another solid option, boasting 90% of its tokens in circulation, which minimizes the risk of drops in value due to the release of new tokens.
Fantom (FTM)
Fantom stands out with its recent Sonic update, turning it into a high-speed sidechain for Ethereum. With most of its tokens already in circulation, it represents a promising investment opportunity.
Injective (INJ)
Injective stands out for its innovation and market position. It is a good choice for investors who want to avoid VC-dominated projects.
Avalanche (AVAX)
Avalanche is a stable investment due to its large market size and high percentage of circulating tokens.
BNB (BNB)
While not traditionally a top pick, BNB’s technical chart shows promising upward trends, making it a potential buy.
Arweave (AR)
Arweave is particularly interesting since 100% of its tokens are already on the market. Its recent outperformance versus Filecoin highlights its potential.
Polka dot (DOT)
With 94% of its tokens in circulation, Polkadot offers an attractive investment, especially with its recent technology upgrades.
Because you need a good strategy
For investors navigating the altcoin market amid VC-dominated projects, it is crucial to focus on tokens with high circulation and solid fundamentals. Crypto Banter highlights tokens such as Solana, Near Protocol, Fantom, Injective, Avalanche, BNB, Arweave, and Polkadot as promising opportunities that minimize the risks associated with VC influence.
Also check: Top altcoins to watch amid hype over Spot Ethereum ETF (ETH) approval
Do you agree with Crypto Banter’s choices? Let us know which altcoins you’re keeping an eye on.