TLDR:
- VC-backed altcoins are showing significant movement in the market, hinting at a potential trend.
- Coins like Saga, StarkNet, Ena, and Wormhole have good investment opportunities due to past unlocks and lower valuations.
In a recent surge, VC-backed altcoins are starting to outperform in the market. Analyst Miles Deutscher explains that these coins, which were heavily beaten down with declines of 80-90%, are now seeing significant movements. The key reason behind these movements is that once a coin is deeply discounted, even small positive news can lead to substantial price increases.
Deutscher emphasizes the importance of choosing the right assets in the current market cycle. He points out existing coins like Saga, StarkNet, Ena, and Wormhole as potential investment opportunities. These coins have already experienced significant unlocks and may offer good returns if bought at lower valuations.
Additionally, Deutscher advises keeping an eye on emerging projects like Initia, Bearer Chain, and Zero Gravity. These projects might launch at undervalued prices, providing potential for gains if they outperform expectations.
Unlike previous market cycles where many altcoins surged simultaneously, this cycle requires a more selective approach in choosing assets. Deutscher suggests that simply timing the market is not enough; selecting the right coins to invest in is crucial for success in the current market environment.
Overall, the surge of VC-backed altcoins presents an opportunity for investors to capitalize on undervalued assets and potential market trends. By carefully selecting assets and monitoring new projects, investors can navigate the market cycle and potentially outperform in the altcoin space.
