The entire crypto market is red-hot right now, and it’s not just Bitcoin that’s on fire. Altcoins, those cryptocurrencies other than Bitcoin, are seeing big momentum, especially in the Decentralized Finance (DeFi) and Layer-2 space. This post was originally published on GreedyChain.com. It will unpack the forces fuelling the ongoing “altcoin season,” identify major trends, and help you understand what this all means for investment opportunities. No buzz words, just water tight content to keep you at the forefront in the fast paced arena of Web3.

Understanding the Altcoin Surge

That’s because a perfect confluence of factors has created the current altcoin boom. Another major telltale sign has been the fall of Bitcoin dominance. Bitcoin dominance is the percentage of the total cryptocurrency market capitalization that is made up of Bitcoin. When Bitcoin dominance is dropping, this can signify that investors are diversifying their portfolios. They are pumping that capital into altcoins, which shows that institutional investors are interested in the crypto market at large and not just Bitcoin.

The emergence of DeFi ETFs (Exchange Traded Funds) are proving to be instrumental. These ETFs provide investors with a regulated and convenient investment vehicle to gain exposure to a broad range of DeFi tokens. This shortens the learning curve for traditional investors making their first moves into the DeFi industry. This demand is ambitious, largely due to increasing accessibility, which drives more capital into DeFi projects, boosting the value of their associated tokens.

From a technical analysis point of view, there are numerous altcoins flashing bullish signs of persistent outperformance. These indicators range from positive momentum in trading volumes to bullish chart patterns, as well as increasing developer activity on their respective platforms. Put all these aspects together and you have created a very fertile ground for altcoins to flourish and possibly even bring life changing returns.

DeFi and Layer-2 Tokens Leading the Way

Within the altcoin market, DeFi and Layer-2 tokens are most impressive. DeFi tokens are associated with projects that are developing decentralized financial applications that provide services such as lending, borrowing and trading without intermediaries. Layer-2 solutions are all about increasing the scalability of current blockchains, including Ethereum itself. They speed up and reduce the cost of transactions.

Solana, on the other hand, claims to have 82 million monthly users, and is the most active network in the entire ecosystem. Because of its high transaction speed and low fee structure, it’s highly sought after by developers and users alike. As a result, a rich ecosystem of DeFi applications has emerged. Jupiter, the most used application on Solana, provides token swapping services and accounts for almost 80% of the network’s activity.

Ethereum, despite being the clear leader of the DeFi space, is struggling with scalability issues. Layer-2 solutions, such as Optimism (OP), aim to fix these problems. Unlike the Ethereum mainnet, these Ethereum solutions process transactions off-chain. They then aggregate those transactions onto the main Ethereum chain, which relieves congestion and decreases gas fees. Layer-2 solutions are booming, and liquidity for their native tokens is booming, with it. We love the improvement in performance these solutions give to both users and developers.

Spotlight on Promising Altcoins

Considering there are over 10,000 distinct altcoins in the cryptocurrency market, it’s tough to know which ones will perform the best. Here are a few examples that are showing promise:

  • SEI: A Layer-1 blockchain specifically designed for trading, SEI offers high throughput and low latency, making it well-suited for DeFi applications.
  • OP (Optimism): As mentioned earlier, Optimism is a leading Layer-2 scaling solution for Ethereum, aiming to improve the network's scalability and reduce transaction costs.
  • ETH (Ethereum): While not strictly an "altcoin," Ethereum remains the foundation of the DeFi ecosystem, and its ongoing upgrades and developments continue to make it a compelling investment.

Do keep in mind that the altcoin market is extremely volatile, and not all projects are going to make it. It’s important to note that comprehensive research and due diligence are extremely important before taking the plunge with any altcoin investment.

Actionable Advice: Strategic Portfolio Allocation

Considering the opportunities altcoins present, what’s the best strategy for cryptocurrency investors? One popular strategy is investing a small percentage of your portfolio (5-10%) in the most promising altcoins. This gets you in on the potential upside while protecting you from the downside risk.

Remember that risk management is paramount. Always have stop loss orders in place to protect against excessive losses and get ready to regularly reassess your positions.

  • Real-World Usage Metrics: Look for projects with strong user adoption, high transaction volumes, and active developer communities.
  • Team and Technology: Evaluate the team behind the project and the underlying technology. Is the team experienced and capable? Is the technology innovative and solving a real problem?
  • Market Capitalization and Liquidity: Consider the market capitalization of the altcoin and its liquidity. Lower market cap altcoins can offer higher potential returns but also come with higher risk.

Beyond DeFi and Layer-2, other altcoin categories are skyrocketing. Meme coins, AI-agent tokens, and new Layer-1 solutions are hot today on the market.

Other Altcoins Making Waves

That’s in-line with another crypto currently on fire, Worldcoin, which is up 27% today, 33% this week, and 81% this month. hyperliquid has soared in value. This wave was largely due to one trader’s $25 million bet with 40x leverage earning Bitcoin to increase in price. A few of the most successful altcoins then went on to make more than 1,000% in only a little more than a week.

  • Meme Coins: Dogwifhat, a Solana-based meme coin, has seen significant gains, demonstrating the continued interest in this speculative asset class. Similarly, $BROCCOLI, a meme token on BNB, is based on the pet dog of Binance’s ex-CEO, Changpeng ‘CZ’ Zhao.
  • AI-Agent Tokens: MIND of Pepe, a Pepe-themed AI agent on Ethereum, is another example of the growing interest in AI-related crypto projects.
  • Layer-1 Solutions: Solana's success highlights the potential of Layer-1 blockchains that offer improved performance and scalability compared to older networks.

For investors, presales are a sure way to capitalize on the ground floor of high potential new projects. With that opportunity comes much risk, as most presale projects never end up producing even a fraction of what was first promised.

New Opportunities in Presales

As mentioned, Best Wallet Token is currently in presale and has already raised $12.5 million in the process. Considering its solid use case and still-early stage of development, $BEST has the potential to explode this upcoming altcoin season. Bitcoin Hyper is now live in presale and has already received well over $1.6 million from early investors. Riding on this momentum, it stands the chance for a mind-blowing 12,370% increase! $HYPER is currently available for purchase at just $0.012025, presenting investors with an incredible opportunity to capitalize on the token’s potential growth. Hyper mints enclosing $BTC on the L2 for lightning speed transactional capacity. This process reduces overall gas fees and makes more complex operations possible.

Anjali Mehra thinks these 7 cryptocurrencies are the best investments based on today’s market dynamics. Just be sure to do your homework and hedge your bets appropriately.

Best Cryptocurrencies to Consider for Investment

Toncoin (TON) is the native cryptocurrency of the Open Network, a decentralized, open-source blockchain originally developed by Telegram. TON provides for speedy, secure, scalable solutions supporting decentralized applications. For example, these involve micro-payments, decentralized storage, and decentralized applications (dApps).

1. Toncoin (TON)

TON’s seamless integration with Telegram provides TON with a clear first-mover-user-advantage. Given Telegram’s already extensive user base, TON could see rapid adoption from millions of users almost overnight. This integration has a tremendous ability to increase demand for TON and all services built on it. TON is built to be extremely scalable, with the goal of supporting millions of transactions each second. This scalability is key to enabling the full gamut of applications and services.

Nexo is a crypto-backed lending platform. Users can earn yield on their crypto assets or use their crypto as collateral to borrow against. With a core vision of bridging the gap between traditional finance and the crypto world, Nexo’s mission is simple. It delights users of traditional finance with services they expect, all backed by innovative, bleeding-edge blockchain technology.

2. Nexo (NEXO)

Nexo provides instant crypto-backed loans, which let users borrow funds without the need to sell their crypto assets. This can be particularly appealing for more liquidity-inclined crypto users who want to continue holding their crypto. Through Nexo, users can earn up to 12% annual interest on their crypto by depositing them into a Nexo account. Interest rates are calculated individually based on each asset and each length of deposit. Nexo features a credit card that lets users shop with their crypto assets while keeping them intact. The card is collateralized by the user’s crypto assets and provides instant cashback rewards.

APENFT Foundation is dedicated to promoting and investing in blockchain-based NFTs. APENFT continues to play a dynamic role in bridging the gap between traditional art and the digital frontier. They have been supporters of artists, galleries and institutions entering the NFT space.

3. APENFT (NFT)

APENFT holds one of the largest collections of NFTs globally, featuring works by legends of the art world and up-and-coming creators alike. The foundation has funded the development of new NFT projects and technologies. APENFT deeply engages in the development of the NFT ecosystem, organizing exhibitions, conferences and educational initiatives widely recognized by the community. Historic basis The goal of the foundation is to educate people about NFTs and how they can transform the art world. APENFT invests directly in promising NFT projects and technologies, providing developmental funding and support to help them succeed.

The altcoin market is dynamic and ever-changing. The promise of outsized returns is alluring. It’s imperative to step into this new market carefully and strategically. So, do your homework, know your risk, and keep up with what is happening on the cutting edge of tech and policy. GreedyChain.com will continue to provide you with the insights you need to navigate the Web3 landscape and stay one step ahead.

Final Thoughts

The altcoin market is dynamic and ever-changing. While the potential for high returns is enticing, it's crucial to approach this market with caution and a well-thought-out strategy. Remember to do your research, manage your risk, and stay informed about the latest trends and developments. GreedyChain.com will continue to provide you with the insights you need to navigate the Web3 landscape and stay one step ahead.