Analyst Jamie Coutts Expects Opportunities in Small and MidCap Altcoins After Correction Clears
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Analyst Jamie Coutts Expects Opportunities in Small and MidCap Altcoins After Correction Clears

Crypto analyst Jamie Coutts believes that the current downturn in digital assets could present a unique opportunity for investors. Coutts, known for his insights on platforms like X, points out that Bitcoin (BTC) and Ethereum (ETH) have shown resilience compared to other cryptocurrencies, indicating a potential shift in favor of smaller projects.

According to Coutts, smaller cap crypto assets have been facing challenges since the peak in March of this year. Over the past three months, the Top 200 equal weight index has dropped by 33%, while the Market Cap index is down by approximately 12%. Here is a breakdown of the three-month sector returns based on Coutts’ crypto classification framework:

– Smart Contract Platform: -31.58%
– Infrastructure: -43.28%
– Digital World: -44.13%
– Digital Currency: -31.59%
– DeFi: -31.15%
– Applications: -38.33%
In contrast, BTC and ETH have only experienced minor declines of -11% and 5%, respectively.

Coutts predicts that if this correction is part of a typical mid-cycle pattern, there could be promising opportunities in the mid and small cap segment once the market stabilizes.

When the market rebounds, Coutts suggests that decentralized artificial intelligence (AI) could offer significant potential, although he does not specify any particular coin or project. He also highlights a chart that compares the declining price index of layer-1 smart contract platforms with the increasing number of daily active users (DAUs). This divergence, according to Coutts, is a strong indicator of the crypto ecosystem’s health.

The number of daily active addresses on smart contract platforms has increased by 30% since March, despite a 30% drop in the sector index. This suggests that users in the Web3 space are less sensitive to price fluctuations compared to previous cycles. Even though prices are currently 37% lower than their all-time high, DAUs have more than doubled from 4.2 million to 11.2 million.

In conclusion, Coutts emphasizes that while price movements do not directly reflect user activity, the growth in DAUs is a positive sign for the overall health of the crypto market.

For more updates and insights, be sure to subscribe to receive email alerts from platforms like X. Remember to conduct thorough research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets, as your financial decisions are ultimately your own responsibility. The Daily Hodl does not provide investment advice and encourages readers to exercise caution when trading cryptocurrencies.

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