While the crypto market has seen more than $2 trillion in value disappear since fall 2021, lead crypto analyst Gritt Trakulhoon at Titan Global Capital Management – a $750 million investment advisor – believes now is a great time to invest in strong projects. So, which altcoin projects is the expert investing in? Here is the list and predictions…
Crypto crash: what happened?
Crypto has become one of the most volatile asset classes, largely due to price fluctuations. As we reported on Kriptokoin.com, two weeks ago, Bitcoin dropped to $ 17,000, while Ethereum touched $ 900. It’s a far cry from the respective price peaks of around $69,000 and $5,000 last fall. Trakulhoon used the following statements in his statements on the subject:
I think a lot of this has to do with the insane growth of crypto over the past few years due to extremely loose Fed monetary policies. And what we’re seeing now shows that many things have been overvalued and reverted to a more reasonable valuation. This is what you see in all risk assets, not just crypto. Many projects didn’t really have strong long-term foundations. Now, after this kind of market-wide purge, there will be a build period. It will be a time when real innovation begins, where founders really start to bow down, start building platforms that really grab our attention and are exciting.
Crypto investment advice
Trakulhoon said that what caused crypto funds like Three Arrows Capital to crash during this bear market was over-investment in many of the riskier altcoins. The two most popular cryptocurrencies account for 60% and 22% of crypto assets respectively, while altcoins each account for less than 1%. As for choosing which cryptocurrency to add to Titan’s portfolio, Trakulhoon outlined four metrics he looks for with a potential crypto investment.
The first thing it evaluates is the cryptocurrency’s value proposition, including what it’s trying to figure out and whether there is a market for it. Then it looks at the growth of a cryptocurrency. The next thing he looks for is the integration of a cryptocurrency with other projects. The last thing Trakulhoon is looking for are factors such as the utility of the project’s tokens, supply and issue rate.
What’s in Titan’s altcoin portfolio?
Trakulhoon listed the altcoin projects that Titan owns and the rationale behind their reasons. While most of Titan’s assets are in Bitcoin and Ethereum, he is diversifying his portfolio with four other altcoins. You can see the invested cryptocurrencies and the analyst’s short comments in the list below:
- Bitcoin (BTC): Bitcoin serves as a crypto starting point for institutional investors. It also makes up most of the assets of the funds/borrowers/lenders as it is crypto with a mature enough market depth and liquidity. Among cryptocurrencies, BTC is great as a defensive asset in bear markets.
- Ethereum (ETH): Ethereum is the world’s largest decentralized operating system that powers thousands of applications and businesses. Ethereum paving the way for NFTs, DeFi and dApps; It has the potential to be the base layer for Web3 Additionally, Ethereum is rich in catalysts. The analyst points to the upcoming “Merge” upgrade.
- Solana (SOL): Solana allows to achieve over 50k tps per second throughput. The team makes smart developments and partnerships to lay the foundations for a vibrant ecosystem. Solana continues to gain strong traction with more than 360 projects being built in its ecosystem. Institutions are beginning to take an interest in the recent flurry of infrastructure developments in Solana’s ecosystem. Unique buyers have increased from 14,579 in August to over 80,000 in February since last summer when NFTs first went online on Solana. Total transactions increased at a similar rate.
- Avalanche (AVAX): Avalanche comes with a seriously impressive list of technology innovations that allow the platform to deliver over 4500 transactions per second and scale to unprecedented levels of decentralization from tens of thousands of nodes. Businesses can create private Blockchains with their own custom app.
- Polygon (MATIC): Polygon is a leading Ethereum Layer 2 scaling solution that offers much higher speed and lower transaction cost for users. By combining multiple L2 scaling technologies, Polygon has expanded its ambition to be an all-in-one L2 solution provider for Ethereum.
- Cosmos (ATOM): 2022-2023 will be an action-packed year for Cosmos, with upgrades to increase Cosmos Hub and ATOM utility. First, cross-chain security will allow Cosmos chains to effectively lease security from the Cosmos Hub, enabling ATOM validators to earn rewards. Second, Liquid staking will allow holders to maximize their ATOM while still earning staking rewards. Finally, the NFT module will offer a range of tools.
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