Synopsis
crypto assets: Key altcoins had a mixed start this year, with Ethereum underperforming, dropping nearly 20%. Bitcoin dominance remains strong above 61%. However, based on market cycles and seasonality, a reversal is expected soon. Once Bitcoin crosses the $100,000 mark again, it could reignite momentum in the altcoin market, driving broader crypto gains.
Bitcoin ended January with its highest monthly close ever and a considerable 9% gain. Trump’s inauguration and anticipation of easing of regulations for crypto were the main narratives driving its price action. Since then, however, volatility in crypto has been high with indecisive market action.
Key altcoins have had a mixed start to the year. Ethereum, especially, has underperformed with nearly a 20% drop since the year started. Bitcoin dominance has gathered strength above 61%. Based on seasonality and timing of the market cycle, we expect a reversal soon – once Bitcoin marches past the $100,000 level again, it should bring life into the altcoin market.
Given this background, we explore some leading narratives in crypto and identify potential gems that could yield strong returns in the coming months. Our estimates on returns are moderated and time bound to the next six months.
Crypto Tracker
TOP COIN SETSWeb3 Tracker0.58% BuyAI Tracker0.37% BuyCrypto Blue Chip – 5-0.31% BuyNFT & Metaverse Tracker-0.37% BuyDeFi Tracker-2.98% BuyTOP COINS (₹) Tether87 (0.03%)BuyBitcoin8,349,675 (-1.98%)BuyEthereum228,079 (-2.86%)BuySolana17,054 (-3.01%)BuyXRP210 (-3.11%)BuyRemember, it’s crucial to conduct your own research and understand the risks associated with each investment.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
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Layer 1s and other Infra – AVAX, SUI and HYPE (Medium Risk, Good Returns)
Blockchain infrastructure forms the backbone of Web3. We identify three altcoins, which can have strong returns this quarter.
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Avalanche (AVAX) is a Layer-1 blockchain focused on the development of subnets which facilitate gaming. It is backed by Pantera Capital, a16z (Andreessen Horowitz), Coinbase Ventures etc. Avalanche has been successful in onboarding BIG games like Shrapnel, Spellborne, Bloodloop, Off the grid etc. Avalanche also supports a growing memecoin ecosystem. With a market cap of $11 billion, AVAX has potential to a 3-5x over the next six months.
Sui (SUI) is often touted as a challenger to Solana. It is a Layer-1 blockchain founded by a strong of developers who earlier worked together in Meta. It is based on Rust programming language similar to Solana and it aims to cater to the next billion users in Web3. It is backed by a16z, Binance Labs, Franklin Templeton and Coinbase Ventures among others. SUI, currently at $10 billion market cap, can do a 3-5x this year.
Hyperliquid (HYPE) operates on its own Layer-1 blockchain, specifically designed to enhance the efficiency DeFi applications using a custom consensus algorithm called HyperBFT. With over $160 million in total value locked, Hyperliquid is gaining traction in the DeFi space. Its token, HYPE, was one of the best airdrops last year for loyal users. HYPE has grown from $4 to $24 in no time and, with a $8 billion market cap currently, can do a 5-8x this year.
Exchange tokens – BNB and BGB (Considerable Risk, High Returns)
Tokens associated with global crypto exchanges have a meaningful utility for frequent traders. They help lessen the fees as well as are used as a medium for crypto transactions and DeFi initiation. However, they are also risky considering the impact of market regulations on the exchanges. We enlist two such tokens today.
BNB (formerly Binance Coin) has been the front-runner in its group. It is among the top 10 crypto assets by market cap and is backed by Binance, one of the world’s largest exchanges. With a current market cap of $89 billion, BNB has the potential to enter price discovery soon and do a 3-5x this year.
Bitget Token (BGB) is the token of upcoming global exchange Bitget. Bitget has been a favourite among traders for trading new coins and for using leverage. BGB has grown considerably at the end of 2024 with a 90-day return of 350%. With a market cap of $8 billion, BGB has potential to do a 5-7x this year.
Memecoins of the month – SHIB and PEPE (High Risk, High Returns)
Memecoins were in trend again in January with the advent of TRUMP and MELANIA. However, they have fizzled out post Trump’s inauguration and are currently 50-60% off their local tops.
Though the risks are high, there is a considerable merit to allocating a minor portion of one’s portfolio to them. We pick two such coins this month – SHIB and PEPE. They both have potential to deliver strong results.
The OG – BTC and ETH (Lowest Risk, Decent Returns)
It is prudent to pivot a majority of your crypto portfolio to the safest assets – Bitcoin (BTC) followed by Ethereum (ETH). It is proven to build adoption by new investors in the space. Bitcoin’s returns will be less significant (1.5-2x) hereon but it drives the narrative and volume in crypto.
(The author is CEO of Giottus Crypto Platform)
