A closely followed crypto analyst says that only a select group of altcoins will survive the bear market and recover in the coming years.
The pseudonymous analyst known as Altcoin Sherpa tells his 178,000 Twitter followers that he expects about 5% of altcoin projects to survive the current crypto winter.
The analyst names smart contract platform Solana (SOL), blockchain scaling solution Polygon (MATIC) and blockchain-based video game Axie Infinity (AXS) as projects that can stand the test of time.
“Altcoins as a portfolio diversification is nearly always a bad idea in the bear market. Everything is going to dump the same –good projects, bad projects, etc. I’m guessing 5% of projects make it out alive and recover well for years to come after BTC bottoms. SOL, MATIC, AXS.”
At time of writing, SOL is changing hands for $32.18, up over 9% in the last 24 hours.
MATIC is currently valued at $0.36, an over 10% surge in the past day.
AXS is trading at $13.16, an increase of over 4% in the past 24 hours.
Altcoin Sherpa says that many projects will disappear forever, and for now, he’s only confident in trading Bitcoin (BTC) and Ethereum (ETH).
“Bad projects will continue to dump and die/stay dead forever. Good ones will stick around overall. I don’t really see many that I like and would rather just play BTC and ETH for now. If you want to buy stuff for long-term holds, I would focus on projects that’ll stay around…”
Looking at Bitcoin, the analyst warns that a breach of the $18,000 support could ignite a fresh round of sell-offs for BTC.
“BTC: if this area fails then we’re seeing $12,000. Still a bit from there.”
At time of writing, Bitcoin is valued at $19,961, up over 10% in the last day.
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/local_doctor
