Ran has switched to altcoins with ten-fold upside potential and is selling a portion of his Ethereum holdings. He believes that this is the best Altcoin opportunity he’s seen since 2018, and that his strategy tweak will surely pay off.
During altcoin season, 75 percent of the top 50 currencies by market capitalization outperform Bitcoin over the course of 90 days.
According to Ran, altcoin seasons come in cycles, and the evidence imply that one is now underway, with Bitcoin being the only thing standing in the way of a full blow off.
According to Plan B, the author of the Stock-to-flow model, Bitcoin is expected to move sideways in September. Ran says the model supports Will Clemente’s chart, which shows that demand for Bitcoin is low following a 60 percent rally that began near the end of July.
This indicates that institutions are currently passive in Bitcoin, and that momentum is shifting away from Bitcoin and toward certain altcoins. Smart contract native tokens and layer tokens have outperformed the market in the last seven days.
According to Ran, the NFT and DeFi ecosystems have been pushing the market recently, with everything taking place largely on Ethereum. Should another experiment like NFT or DeFi appear on the scene, he believes Ethereum will not be able to contain all, even if its scalability difficulties are fixed.
Cardano, Solana, Polkadot, and Kusama are the main alternative smart contract function blockchains that institutional investors are exploring and heavily investing in.
Luna is another amazing protocol that is gaining traction in the mainstream when it comes to payment and decentralized finance (DeFi), with a market capitalization of $13 billion.
Ran also referenced a Glassnode piece regarding the likelihood of a multi-chain future, with interest in alternative smart contract chains exploding in recent weeks as prices for Avalanche, Solana, and Terra skyrocket.
According to Ran, this gives everyone with a significant opportunity to take advantage of being early in these smart contract protocols, comparable to when Ethereum first appeared on the market and the networked ecosystem grew.
Because Solana’s growth is extremely comparable to Ethereum in terms of technology and venture capital attractiveness, Ran has shifted approximately a quarter of his Ethereum holdings to Solana, which he believes is undervalued at its present pricing.
Ran has also put more than another quarter of his Ethereum assets into Arweave. He was an early investor when the coin was not yet listed on any exchange, and he has added to his holdings since then.
Arweave is the only system that permits users to save data indefinitely for a one-time fee.
Ran says he is bullish long term on Arweave because Solana is one of the blockchain that stores data on Arweave. Solana expansion means Arweave will grow simultaneously and he expects other blockchains to adopt Arweave too in the future. Arweave current market cap is valued at $2 billion
This episode premiered on August 30th, 2021.