In the aftermath of the market crash of recent weeks, crypto analyst Michaël van der Poppe has done just that as long as an analysis of Bitcoin’s trajectory and its impact on altcoins. His comments focused on Bitcoin’s dominance and the readiness of the altcoin markets, especially in sectors such as artificial intelligence (AI) and decentralized finance (DeFi), for a potential recovery and significant growth.
Van der Poppe started his analysis by discussing Bitcoin dominance, a measure that reflects Bitcoin’s market capitalization relative to the entire crypto market. The analyst noted that, contrary to popular belief, the current state of Bitcoin dominance does not herald the start of a bear market.
“Bitcoin’s dominance is not at the beginning of a bear market, but at the end of the bear market and possibly the beginning of a bull market,” he said. This observation is critical as it suggests that Bitcoin’s market power is stabilizing, potentially paving the way for an altcoin rally and capital flows into low-cap cryptocurrencies.
Best altcoins to buy now
Van der Poppe focused on strategic investment opportunities after the crash and underlined the importance of selecting altcoins based on sector strength and market recovery potential. He pointed out that AI and DeFi are two sectors where growth could be the most explosive due to underlying technological advancements and increased use cases. Within these sectors, he identified specific tokens that exhibit characteristics of resilience and high growth potential.
#1 BTA
A hallmark within the AI sector, TAO is highlighted by van der Poppe for its robust performance in recent weeks, with a notable 70% recovery from its lows. “TAO is a super strong asset within the AI sector and has shown a 70% recovery from its lows,” he noted.
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This recovery is significant as it reflects growing investor interest and confidence in AI technologies within the blockchain space. Van der Poppe predicted an optimistic future for TAO, suggesting, “This is one that could do another 5x to 10x from here,” based on current trajectory and market interest.
#2 AAVE
Van der Poppe shifted his focus to the DeFi sector and advised AAVE, a token that has shown significant strength against Bitcoin and USDT. “AAVE has a pretty standard or nice accumulation against Bitcoin; it is making new highs against USDT and consolidating just before a major breakout.”
He highlighted AAVE’s relative undervaluation by comparing its total value (TVL) to its market capitalization. “If we look at TVL versus market cap, the market cap of a is $1.5 billion and the TVL is about $10.3 billion, which means that valuation is 0.5. For ONDO it is 15. It is 100 times bigger, so 0.5 is severely undervalued, while the regular valuation should be around 0.5 to 1, meaning there is a lot of momentum to succeed,” he explained out.
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#3 RENZO
In addition to AAVE, Van der Poppe drew attention to RENZO, another DeFi asset that, despite being in a downtrend, is showing signs of reaching a lower valuation threshold that could attract speculative interest and potential upside. He described RENZO as a higher-risk investment compared to AAVE, but noted that the asset’s significantly lower valuation relative to TVL could provide an attractive buying opportunity for risk-tolerant investors.
“I want to show you RENZO, which currently has a market cap of $50 million, fully diluted $440 million, but the TVL we can see on DefiLama is $1.3 billion. So in that respect the valuation is even lower than AAVE, but there is also more risk associated with investing in such an asset,” the analyst said.
#4 AEVO
Finally, Van der Poppe turned his attention to decentralized exchanges, especially AEVO. He described AEVO’s unique position in the market, which offers advanced trading capabilities such as prediction markets, options and hedging. “AEVO is very likely to make a bullish divergence and a bearish wedge, and will likely reverse from here,” he assessed, indicating possible upcoming growth potential.
“These are my main bets that I want to make in this market and in the coming weeks,” Van der Poppe concluded.
At the time of writing, TAO was trading at $294.22.
Featured image created with DALL.E, chart from TradingView.com