- Many altcoins have gained 1000%, which coin will be next?
- The altcoin market cap doubled in about two weeks.
According to Kramer, many small cap coins have exploded over the last few months. The altcoin market cap has almost doubled in February alone from $389 billion to over $580 billion. With some DeFi and non-DeFi coins gaining over 1000% in a period of 3 months.
Kramer noted that with more mainstream use, most coins with a strong team and stable base have been pumped hard. However, it is hard to say for certain which coin will take-off next. There is an equal chance of it being either a DeFi or non-DeFi coin.
Notably, the DeFi coin market cap has gone up 300% from $20 billion to $81 billion to date. The stablecoin market cap, on the other hand, has gone up 85% based on CoinGecko charts. With many coin types doing so well, Kramer emphasized the importance of diversifying one’s portfolio.
Diversification can help reduce the overall risk exposure when holding volatile assets.
Kramer also noted that the altcoin market has started to stagnate and questioned if this could mark the end of the Altcoin season. However, crypto adviser Lark Davis attributed the current dip to the market having a technical adjustment. Furthermore, Lark believes that the bullish trend is far from over.
With such uncertainty perhaps it is best to take Kramer’s advice and trade low cap coins for higher cap ones like Bitcoin and Ethereum. Several bluechip companies like Tesla and MicroStrategy have recently added BTC to their balance sheets. Similarly, ETH has seen increased institutional interest with the relaunch of the Graystone Ethereum Trust and CME’s recent ETH futures launch.