The video by Nicholas Merten from DataDash, dated January 26, 2024, discusses three main altcoins to watch in Q1 of 2024, highlighting their potential for significant returns based on their fundamentals, market narratives, and technical setups. Here’s a summary of the key points for each coin:
1. Stacks (STX)
- Overview: Stacks is emphasized due to its role in Bitcoin-related infrastructure, tapping into the untapped market potential of Bitcoin by enabling smart contracts and DeFi applications on Bitcoin through a layer-2 solution.
- Market Potential: With Bitcoin’s large market cap and dominance, Stacks presents a significant opportunity for growth by making Bitcoin more usable beyond just a store of value.
- Technical Analysis: Stacks has shown strong price action, maintaining well above the 100-day moving average, indicating strong buyer interest. The potential for a breakout above previous resistance levels could see substantial price increases.
- Price Action & Valuation: At the time of the video, Stacks had a market cap of around $2.1 billion, with Nicholas suggesting a potential for a 5-10x return if the Bitcoin infrastructure narrative continues to gain traction.
2. Render Network (RNDR)
- Overview: Render Network is highlighted for its utility in outsourcing GPU power for computational tasks, particularly relevant in the context of the growing demand from generative AI.
- Market Relevance: With the scarcity of GPU resources and the increasing computational demands of AI, Render Network’s model of decentralized GPU power sharing is seen as highly valuable.
- Technical Analysis: Render Network has shown resilience by bouncing off the 100-day moving average, with potential for significant upside if it breaks through current resistance levels.
- Market Valuation: With a market cap around $1.4 billion, Nicholas sees Render as capable of a 2-4x return, especially if the AI narrative remains strong and GPU resources continue to be in high demand.
3. AngelBlock
- Overview: AngelBlock is presented as a solution to the challenges of fundraising in the crypto space, aiming to reduce the risks of scams, rug pulls, and failed projects by implementing a governance system for fund releases based on milestone achievements.
- Market Niche: By addressing a critical issue in the crypto fundraising ecosystem, AngelBlock is seen as having significant potential despite being a smaller market cap project compared to Stacks and Render.
- Technical Analysis & Valuation: AngelBlock, with a much smaller market cap (around $10 million fully diluted), is considered higher risk but with the potential for substantial returns if it becomes a standard for crypto fundraising.
Nicholas emphasizes the importance of conducting one’s own due diligence and not making investment decisions based solely on his recommendations. He also highlights the use of technical analysis tools like Lux Algo signals in evaluating these cryptocurrencies.