The cryptocurrency market has been experiencing a remarkable surge recently. In just the last month, the market capitalization has soared from $2.54 trillion to approximately $3.36 trillion, representing an impressive growth of 32.28%. This bullish momentum has provided significant gains for several cryptocurrencies, including Bitcoin, which has seen a 30-day increase of 22.2%, and Ethereum, which has grown by 15.7%. However, not all digital currencies are likely to benefit equally from this favorable market climate. So, how does one decide which cryptocurrencies to invest in during this period?
Exploring the Current Crypto Bull Run
Crypto expert VirtualBacon offers valuable insights into navigating this bullish trend. While he anticipates substantial growth in the crypto market over the next 6 to 12 months, he cautions that not every coin will experience massive gains during this bull run. Some cryptocurrencies may have already peaked.
To avoid “fumbling the bag,” as the expert puts it, investors should focus on altcoins with high potential. Historically, altcoins outside the top 10 have outperformed Bitcoin by at least five times. VirtualBacon predicts that mid-cap cryptocurrencies could achieve growth of over six times their current value, while low-cap cryptocurrencies might see increases ranging from 10X to 20X.
In contrast, Bitcoin is expected to see a more conservative twofold increase, while top ten cryptocurrencies like Ethereum and Solana could experience a three to fourfold surge.
Should You Sell XRP and XLM?
The expert points to a dramatic fivefold increase in XRP’s price, rising from $0.50 to $2.50 within a month. He attributes this to retail FOMO (Fear of Missing Out) and a spike in search interest, which are typical indicators of late-stage hype. Despite the compelling ISO 20022 narrative, he believes that XRP and similar tokens like Stellar may have limited upside potential as they approach their all-time highs.
Instead, he recommends Ethereum and Solana due to their robust use cases and promising growth potential. Algorand also receives attention as an undervalued asset with a significant circulating supply, strong exchange support, and solid fundamentals, offering higher upside potential.
He warns investors to steer clear of certain risky cryptos, including XRP, SUI, Bitcoin Cash, Litecoin, Ethereum Classic, SAND, MANA, AXS, ENJ, and GALA. His rationale is that XRP and SUI are overvalued and overhyped, while Metaverse tokens have shown little progress, and gaming tokens are considered outdated.
Top Cryptocurrencies to Consider
While he acknowledges that the growth potential of the top ten cryptocurrencies may be less compared to others in the coming months, he still advocates investing in Ethereum and Solana due to their solid use cases. Algorand, Avalanche, and Chainlink are also highlighted for their strong fundamentals, scalability, and innovation in the DeFi ecosystem, respectively.
Although he criticizes popular Metaverse tokens for their lack of progress, he believes Wilder World stands out. Similarly, even though he expresses skepticism about established gaming tokens, he sees immense potential in newer gaming tokens such as SuperVerse, XBorgM, SeedWorldMeta, and SuperChampsHQ.
Key Strategies for Navigating the Crypto Bull Run
The expert suggests three essential strategies for cryptocurrency investors during this bull run:
- Focus on innovative projects with strong fundamentals.
- Avoid overhyped coins and outdated models.
- Prioritize fairly launched tokens with active ecosystems.
In conclusion, the ongoing crypto bull run presents a golden opportunity to maximize returns. However, strategic positioning and informed decision-making are crucial to making the most of this dynamic market phase.
