Leading Analyst Uncovers 5 Altcoins with Significant Growth Potential

In a recent market analysis, trader and mentor Michaël van de Poppe from Amsterdam cautions that “retail hasn’t entered the markets just yet” and observes that the widely-recognized Altcoin Season Index remains stagnant around 29—far below the 50-point level that would indicate a shift away from Bitcoin towards the broader altcoin market.

Amid this cautious environment, Van de Poppe suggests that the recent 38–42 percent upswing in the ETH/BTC pair represents the first definitive indication of capital moving into higher-risk assets, supported by on-chain data revealing Ethereum recuperating after an extended period of underperformance. “We’ve seen a 40% gain against Bitcoin in a single week,” he states, “which means large-cap assets are worth keeping an eye on.”

Crypto Watchlist: Top 5 Altcoins

Van de Poppe’s perspective is founded on a traditional flow-of-funds model: capital transitions from Bitcoin to Ethereum, then to large-cap altcoins, mid-caps, and eventually to small caps as market enthusiasm escalates. Based on this framework, he highlights five cryptocurrencies that he believes occupy various tiers of risk, each benefitting from its own macro or sector-level dynamics.

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The initial selection, Chainlink (LINK), is termed by Van de Poppe as the “simplest choice” for institutional integration, emphasizing the necessity of oracles for data transfer in the web-3 domain that bridges web 2 and web 3. He points out that LINK’s chart measured in Bitcoin is “currently at an all-time low,” indicating significant potential upside if a true altseason occurs.

Following that, Aave (AAVE) makes the cut as a large-cap option. Van de Poppe refers to this decentralized lending platform as “a large cap that suggests reduced risk,” while noting the market seems to undervalue its importance in delivering bank-quality yield products on-chain. The token has notably attracted significant interest this cycle, with World Liberty Financial, linked to Donald Trump, recently disclosing substantial AAVE purchases alongside LINK and ETH.

Shifting down the market spectrum, the analyst discusses Wormhole (W), a cross-chain communication and liquidity layer he characterizes as “facilitating transfers between multiple chains,” with revenue being recycled back into the system. He highlights its exclusive selection as bridge infrastructure for several real-world asset initiatives, where “tokenized treasury bill funds” traverse different networks. The listing of Wormhole’s W token by Binance on April 3, 2024, provided a liquidity spike, enhancing accessibility for both retail and institutional users.

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For those investors looking to take on more risk, Van de Poppe points to Peaq (PEAQ), a layer-1 network centered on DePIN and the machine economy. “It possesses the most extensive ecosystem within the machine economy and is … finally gaining momentum,” he remarks, supported by on-chain data that already indicate over 50 active companies and six million devices connected to the network. He believes that the rising number of transactions and inter-industry collaborations render PEAQ a compelling investment proposition at its current price levels.

As for the smallest-cap suggestion, Van de Poppe names Alkimi (ADS), describing it as “an advertising initiative” whose revenue has surged from $1.2 million to $5 million, although its token dropped from $0.50 to $0.10 during the recent market downturn. Alkimi aims to establish itself as a decentralized advertising exchange that minimizes supply chain expenses and enhances on-chain transparency, a model that the company claims could reduce CPMs for advertisers by over 200 percent.

Van de Poppe concludes with advice on building a portfolio instead of providing price targets. “The larger the market cap and the longer it has been in operation, the greater your allocation can be because of the lower associated risks. Conversely, for smaller and newer projects, the allocation should be minimized,” he advises.

As of the latest updates, the total cryptocurrency market capitalization was reported at $3.18 trillion.

Featured image created with DALL.E, chart from TradingView.com