Persistent struggles with high fees and network congestion have allowed layer-one solutions like Polkadot, Solana and Cosmos to become established competitors. In bull and bear markets, wise cryptocurrency investors know that the primary focus should be on project longevity rather than jumping on every short-term price movement. As the crypto ecosystem expands and new sectors arise, protocols that offer the most value to the community stand the best chance at long-term survival and price appreciation.
The goal of this newsletter is to take a more thematic, macro view of niche sub-sectors within the cryptocurrency market and identify projects whose signal they will be successful within the space.
It isn’t about the token price; it’s about the tech, the fundamentals of the project, and how each one must help push the sector forward to the next level.
In a recent conversation with Cointelegraph, Élie Le Rest, partner at digital asset management firm ExoAlpha, said: “Sector trends and crypto are big and are here to stay, but idiosyncratic risk must be taken into account while weighing portfolios.”
According to Le Rest, the “crypto market tends to work on comparable principles,” which is a repeating trend seen multiple times in its history.
With that said, let’s take a deeper dive into the current market cycle rotation taking place in the wider crypto market to get a better grasp on where new money and participants coming into the market are beginning to focus their attention.