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Analyst Identifies Strongest Altcoins Amid Crypto Market Crash: How to Navigate This Cycle

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Sheena Jordan reporter

Mon, 24 Jun 2024, 04:22 am UTC

Analyst's advice on finding strong altcoins in a crypto market crash.

Analyst Miles Deutscher reveals strategies for identifying resilient altcoins during the crypto market crash, emphasizing low inflation and strong community engagement.

Evaluating Altcoin Potential During Market Downturns

It was recently disclosed by analyst Miles Deutscher that retail investors are becoming increasingly wary of new token releases because to their high valuations and ineffective airdrop execution. As a result, they are leaning towards purchasing tokens that have higher public market liquidity.

The analyst speculated that the days of easy venture capital wins might be about to expire based on the fact that public market valuations for recent projects have been lower than their private market valuations.

Focusing on Low Inflation Tokens in Volatile Times

People should give preference to tokens that have low inflation, he recommended. During the time that you have access to the trade window, this may indicate that a significant proportion of the token supply is already in circulation or that the pace of inflation is quite low.

What are some ways that one might identify potential projects in this day and age? According to the analyst's response, initiatives in industries like gaming, real-world assets (RWA), and artificial intelligence (AI) tend to have clear narratives and strong leadership.

Sector-Specific Investment Strategies for Stability

When it comes to market positioning, having a compelling narrative is necessary. Projects should stand out. This could be new technology, features, or product upgrades. Unless they bring significant improvements, avoid duplicating projects like the tenth Layer Two launching in a month.

Look for tokens with buybacks, burns, and appealing staking returns beyond governance. These dynamics restrict the circulation of supply and boost price appreciation, establishing a community.

A strong, engaged community frequently accompanies price appreciation. Valuing community feedback, embracing crypto culture, and being memeable rather than corporate can foster community.

Maintaining price stability is facilitated by low inflation. Ono is only one example of a coin that has done well despite its low float and lack of short-term inflation.

Coinpedia elaborates that one case in point is Ondo, whose recent price spike is attributable, in part, to its very limited circulating supply and negligible inflation, which have been characterized as successful. He posits that future projects could follow suit and control supply pressure by avoiding big first airdrops.

Photo: Traxer/Unsplash

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