Crypto skeptics share common ground with Forrest Przybysz, a senior crypto investment analyst at analytics platform Token Metrics. Both believe that Bitcoin and some smaller altcoin projects are appearing in a bubble. As history has shown, this does not mean that the bubble will not continue to expand any further. However, Forrest Przybysz says a short-term pullback should not be canceled by crypto bulls. Senior analyst’s assessments of the crypto market and altcoin projects on his radar Cryptocoin. com we have prepared for its readers.
According to the analyst, k prospective risks in the crypto market
“Growth has been exponential,” said senior analyst Forrest Przybysz, saying that we are currently in a bubble just outside of this trend line:
We are currently seeing even faster growth than exponential growth. Now every now and then, these little bubbles or parabolic spikes burst and we’re back to the exponential growth trendline of the total cryptocurrency market cap. We didn’t break this trendline, or even really test it, except during the pandemic slump.
Forrest Przybysz argues that if regulators approve and legalize a Bitcoin exchange-traded fund (ETF), Bitcoin could double or triple from current levels to $100,000 or $150,000, which would attract “dumb money” and that when it peaks, the asset He says it may result in a purchase.
Key factors to watch going forward include the COVID-19 variant, geopolitical unrest, and how soon the Federal Reserve will begin to cut back on bond purchases, the senior analyst said. Investors got a grip on the Fed’s framework Wednesday, when Chairman Jerome Powell hinted that the U.S. central bank might sooner or later step off the monetary stimulus accelerator.
“If you gamble on altcoin projects, you probably won’t see 10x returns”
Forrest Przybysz states that when its price pulls back, everyone likes to give up on the leading altcoin Ethereum, which will “pull back” and take more market share. The main reason for the analyst’s bullish thesis is EIP-1559, a scarce hard fork that has drastically reduced the number of new Ethereum tokens entering circulation and will help keep prices higher unless demand falls. Forrest Przybysz predicts that the Ethereum network upgrade took place in early August but is not yet fully priced, ETH could double and “conservatively” rise to $6,000 or $8,000.
Many young crypto speculators choose to bet on altcoins, which in some cases are digital equivalents of lottery tickets. Forrest Przybysz says that smaller cryptos promise potential returns of ten times or more, so they are naturally “in a slightly larger bubble.” The senior analyst makes the following statement for this situation:
If you just go and gamble on altcoins, you probably won’t see 10x returns. You might be lucky, but you probably won’t see 10x returns of any consistency. To increase our chances of investing in altcoins that will see such returns, we have an investment research framework where we weed out any bad altcoins or altcoins that we think will not show such returns.
Altcoin projects on the senior analyst’s radar
Forrest Przybysz says that Token Metrics’ investment framework focuses on each token’s use-case or intended purpose and evaluates whether it can fill an unresolved need. Assuming the token innovates and delivers value, it should provide a strong incentive for investors to hold it.
Forrest Przybysz states that altcoin projects need to have good “supply-side tokenomics” to be successful. This means that the circulating supply has to be high enough and the dilution rate is not too fast. Finally, the analyst underlines that investors should target projects that have strong development teams and supporters.
Three relatively well-known examples of altcoins that Forrest Przybysz says he avoids are Litecoin (LTC), Tron (TRX), and Ethereum Classic (ETC). The analyst does not think they will be permanent despite past successes as they are inferior to their competitors. In turn, Forrest Przybysz shares 12 altcoins he loves and keeps an eye on. Here are these projects.
1. Nano (NANO)
With a market cap of $663 million, the altcoin is a lightweight digital currency that offers fast and secure payments.
2. Bitcoin Cash (BCH)
With a market cap of $10.2 billion, BCH is a fast and private decentralized peer-to-peer money sending system with low fees.
3. Monero (XMR)
With a market cap of $4.3 billion, the altcoin project is a platform that allows private, anonymous payments and transactions.
4. Dash (DASH)
DASH has a market cap of $1.8 billion. Altcoin is an open-source global payment network that offers cheap, fast transfers.
5. Audius (AUDIO)
With a market cap of $930 million, AUDIO is a decentralized music streaming platform that promises to empower artists, in part by allowing them to receive payments directly from listeners.
6. Alpha Finance Lab (ALFA)
ALFA is a Cross-chain decentralized finance (DeFi) platform with a market cap of $370 million that allows developers to address unmet industry needs and earn tokens in the process.
7. The Sandbox (SAND)
With a market cap of $610 million, the altcoin is a blockchain-based video game with a digital world where users can create and exchange digital assets.
8. Decentraland (MANA)
With a market cap of $1.3 billion, MANA is a virtual reality platform that allows users to create and monetize content.
9. Illuvium (ILV)
With a market cap of $335 million, the altcoin is an open world video game built on Ethereum that allows users to fight while collecting and exchanging digital items.
10. Star Atlas (ATLAS)
With a market cap of $187 million, the altcoin is a multiplayer online game in a virtual world where users fight for resources and control.
With a market cap of $987 million, OHM is a decentralized reserve currency backed by baskets of assets.
12. Eden (EDEN)
With a market cap of $3.1 million, the altcoin is a priority transaction network that keeps traders from running ahead, aligning incentives for block producers.