Will My Old Altcoin Shine in the Next Bull Run? 4 Key Things To Consider

Will My Old Altcoin Shine in the Next Bull Run? 4 Key Things To Consider

I recently reported on Phantasma for NGMI Lab and was sorely unimpressed. The once-promising altcoin now seemed like a relic: an outdated whitepaper, limited updates, issues that seemed never-ending, a convoluted onboarding process for users, and a waning community. This got me thinking: how can one predict if an old altcoin will pick up steam during the next bullish wave in the crypto market? Here are four crucial indicators to track:

1. Community and Users:

I’ve waxed lyrical about the importance of community in crypto before, but it bears repeating. A thriving and satisfied community isn’t just a random occurrence; it’s often the result of solid leadership, effective communication, and a team that actually listens. Diving into the maze of community chats on platforms like Discord, Twitter, Telegram, and Reddit can reveal heaps about a project’s health. While it’s a task that might require a bit of digital archaeology, sifting through past conversations and tuning into AMAs offers a goldmine of insights. It’s a bit of a dig, but the gems you find are worth it (and hey, if you’re pressed for time, NGMI Lab is here to help!). Take SuperVerse: Project lead Elliot Wainman faced a massive hack as well as $SUPER having a less than appealing chart, but the real test will be whether their community sticks around.

Uniswap, another coin that could be considered “old” remains at the forefront of decentralized exchanges, not just due to its continued innovation, but also its enormous user base. These real users rely on the platform daily, and such consistent engagement is invaluable in gauging an altcoin’s health.

2. Maintaining First Mover Advantage:

Being the first in any industry offers an unprecedented advantage, but to keep this advantage, projects must continue innovating. Consider Polygon, operating in the fiercely competitive Layer 2 solutions arena. Even with strong contenders, Polygon’s innovative steps, like the launch of the Zk EVM, the partnerships it has forged, and the bustling dApp ecosystem ensure it remains a dominant player. Conversely, Phantasma launched in 2018 pioneering ideas like interoperability and the necessity for low fee blockchains for gaming. This project has now completely lost its first-mover advantage having barely 15 working dApps, and only interoperable between Eth, BSC and…NEO. Suffice to say from my view, Phantasma massively lags behind its competitors highlighting the importance of staying updated and relevant in a rapidly evolving space.

3. Business Fundamentals:

Strip away the jargon, the tech, and the tokenomics, and at their core, most altcoins are businesses. A seasoned altcoin should have its business fundamentals sorted. Are they generating genuine revenue? Have they built a strong user or customer base? Chainlink stands as a great example here. Launching in 2017, it’s still the industry’s premier oracle solution (Source, Dune: here and article: here), achieving this feat not just through technical superiority, but by addressing a genuine market demand and establishing an undeniable revenue stream.

Top 4 oracle comparison Dune dashboard

4. Traders and Price Action:

While community and business fundamentals are vital, we cannot ignore the role of traders. The enthusiasm of a trading community can be a clear sign of an altcoin’s promise. Look at Immutable X, which experienced a 4x price surge post-January low, or Enjin Coin, which saw a 2.5x rise in the same period. Such positive price action showcases genuine excitement and interest around these projects, hinting at a possible bright future.

While the allure of the shiny and new is undeniable in the crypto space, seasoned projects that have been consistently building during bearish times might offer more robust potential. If they’ve been strategically advancing, these older projects could very well be positioned for exponential growth in the next bullish wave. As always in crypto, and in life, don’t knock the oldies. They might just surprise you.