3 Alts To Own “Forever”
PLUS: Alpha Indicators Update 💰
Hi Investor 👋,
I’m Luca and welcome to a new edition of Altcoin Investing Picks.
In today's newsletter:
✅ 3 alts to own “forever”
⛽️ Why ETH has more utility than any other asset in crypto today
💰 Alpha Indicators Update [Premium]
3 alts to own “forever”
While stocks offer a sense of (more) stability and are backed by tangible assets and company performance, cryptocurrencies are relatively young, often volatile, and driven by innovative technology and market sentiment.
So, let’s ask ourselves this question today:
“Which altcoins would you buy without having the intention to sell them over the next few years or even decades?”
Here are my best picks:
3. TRON
The basics
TRON is an EVM-compatible Layer-1 blockchain that uses the TRON Virtual Machine to enable the creation and deployment of smart contracts for decentralized applications
Why I like TRON
The network is currently number #1 amongst public blockchains in terms of daily active users and #2 in terms of total value locked but it’s valued only 6.6x its annual fees.
Over 4.5 billion people that live in Asia that prefer alternative networks — such as Tron. More on Why Crypto’s Future is Asia here.
Tron was responsible for nearly 4 trillion in Tether transfer volumes in 2023 — nearly half the volume of Mastercard transactions last year.
2. SOL
The basics
Solana is a Layer-1 blockchain optimized for scalability. The network’s design goal is to provide a platform that allows developers to create applications without needing to work around performance bottlenecks, such as transaction throughput limitations and prohibitively expensive transaction fees.
Why I like SOL
The network is currently number #1 amongst public blockchains in terms of daily transactions (x5 compared to Near, the second one).
Solana wants to become the king of "consumer" blockchain—a fast, cheap, and mobile-friendly alternative network.
Solana's market cap is currently just 13.8% of ETH + the top L2s.
1. ETH
The basics
Ethereum is a distributed blockchain computing platform for smart contracts and decentralized applications. The network enables users to build extensively through the use of smart contracts and has since led to the creation of various new assets and industries, such as Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), Decentralized Autonomous Organizations (DAOs), Web3, and more
Why you should own ETH
Ethereum is more expensive than Solana but it’s also highly decentralized and very secure. Individuals who are moving million-dollar tokenized assets or locking hundreds of thousands of dollars in DeFi protocols won't be going to mind paying a few hundred dollars in transaction fees and waiting for thirty seconds.
Ethereum is scaling through L2s (since 2022, active addresses on Ethereum + L2s have grown 577% while Solana’s have grown 138%) but Layer 2 tokens are used today only for governance: a few networks will allow users to pay for gas with the L2 token but for the most part, these fees are being paid with ETH.
Utility (see 👇 )
Why ETH has more utility than any other asset in crypto today
ETH has abundant utility within the crypto ecosystem. This utility drives demand for the asset in a similar way that the utility of oil drives demand for the asset/commodity.
Here are 7 reasons why ETH has more utility than any other asset in crypto today:
Gas Fees (including on L2s!) → if you want to transfer a stablecoin, transact on a DEX, mint an NFT, play a game on-chain, get a loan, etc, you need to pay gas fees in ETH.
Collateral to access yield → if you want to capture the yield coming off of the Ethereum Network, you’ll need some ETH.
Collateral for loans → Over 1% (2.3 million) of the circulating supply of ETH is currently locked within MakerDAO smart contracts, serving as collateral for on-chain loans.
Medium of exchange → if you want to purchase NFTs on OpenSea, you’ll need some ETH.
Real-world assets → if you want to tokenize an asset so that it can transact freely and globally you’ll need some ETH.
Smart contracts → if you want to build something on Ethereum, you’ll need some ETH.
Re-staking → ETH can be used as collateral to access fees directly from Ethereum but also from apps and protocols within the Ethereum ecosystem. This is done with “re-staked” ETH.
Alpha Indicators Update [Premium]
Crypto moves in cycles, and knowing where we are in the current cycle is crucial for capturing the best opportunities.
Here are 5 crypto indicators we track and update only for premium subscribers.
The rating scale is as follows:
✅ Free to go
👀 Pay attention
🚨 Close to peak
Let’s dive in!