As the shadow of the hawkish Fed fell over the crypto market, winter winds began to blow. In this environment, whether altcoin projects will survive this winter has been the subject of debate among analysts. A popular analyst is looking at the fortunes of altcoin projects and warning crypto investors as the markets start the new week.
“The lights of these altcoin projects may go out!”
Crypto analyst, nicknamed Altcoin Sherpa, whose views we have also included in the news of Kriptokoin.com, in his posts on his Twitter account, warns that “the lights may go out” for many altcoins if certain price levels are lost. Its analyst says rival tier-1 smart contract platforms Solana (SOL) and Avalanche (AVAX) are both at risk of hitting their bearish targets.
Jump or die.
Source: Altcoin Sherpa / Twitter At press time, Solana was trading at $67.32, down 0.07% in the last 24 hours. Solana is moving towards the analyst’s downside target of $48.56.
Source: Altcoin Sherpa / Twitter Avalanche, on the other hand, dropped 0.95% to $45.67 in the last 24 hours, one step away from Altcoin Sherpa’s target of $39.17.
The analyst gives a broader warning, reminding investors that many altcoin projects will eventually pay back all bull market gains. It highlights several altcoins as checkpoints: Cross-chain decentralized finance (DeFi) platform Alpha Venture DAO (ALPHA), cross-chain data network Band Protocol (BAND), and DeFi platforms Compound (COMP) and Aave (AAVE).
“Projects come and go every year and most of them die”
The analyst goes on to say that most crypto projects are “vaporware” whose price increases can be attributed to hype rather than real benefit:
Most of these projects are vaporware and will go to zero as their tokens die. The hype for many of the projects is mostly speculative and fades as interest wanes.
The analyst explains why Bitcoin (BTC) and Ethereum (ETH), rival projects that have emerged over the years, continue to be kings of crypto market capitalization despite all this, by appealing to the Lindy effect. explains. The theory is that the longer an indestructible item exists, the longer it is likely to stay. The analyst explains:
At the end of the day, it’s important to understand why BTC and ETH are so hard to outperform in the long run and the Lindy effect is real in crypto. Projects will come and go every year, and many will die. Even very good ones like the first four I mentioned.
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