Within the wake of the market crash of recent weeks, crypto analyst Michaël van der Poppe has provided an evaluation of the trajectory of Bitcoin and its impact on altcoins. His remarks centered around Bitcoin dominance and the readiness of the altcoin markets, especially in sectors like Artificial Intelligence (AI) and decentralized finance (DeFi), for a possible rebound and significant growth.

Van der Poppe began his evaluation by discussing Bitcoin dominance, a metric that reflects Bitcoin’s market capitalization relative to your complete crypto market. The analyst noted that contrary to popular belief, the present state of Bitcoin dominance doesn’t herald the start of a bear market.

“Bitcoin dominance is just not firstly of a bear market but it surely is at the top of the bear market and potentially the beginning of a bull market,” he stated. This commentary is critical because it suggests that Bitcoin’s market sway is stabilizing, potentially setting the stage for an altcoin rally and capital flows into low-cap cryptocurrencies.

Best Altcoins To Buy Now

Specializing in strategic investment opportunities post-crash, Van der Poppe underscored the importance of choosing altcoins based on sector strength and market recovery potential. He identified that AI and DeFi are two sectors where growth might be most explosive on account of underlying technological advancements and increased use cases. Inside these sectors, he identified specific tokens that exhibit characteristics of resilience and high growth potential.

#1 TAO

TAO, a token inside the AI sector, is highlighted by van der Poppe for its robust performance in recent weeks, showing a remarkable 70% rebound from its lows. “TAO is an excellent strong asset inside the AI sector and has shown a 70% bounce from its lows,” he noted.

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This rebound is critical because it reflects growing investor interest and confidence in AI technologies inside the blockchain space. Van der Poppe projected an optimistic future for TAO, suggesting, “That is one which might be doing one other 5x to 10x from here,” based on its current trajectory and market interest.

#2 AAVE

Shifting his focus to the DeFi sector, Van der Poppe advisable AAVE, a token that has shown significant strength against Bitcoin and USDT. “AAVE is having a reasonably standard or beautiful accumulation against Bitcoin; it’s making latest highs against USDT and just consolidating before an enormous breakout.”

He emphasized the relative undervaluation of AAVE by comparing its total value locked (TVL) to its market cap. “If we have a look at TVL versus the market cap, then the market cap of a is $1.5 billion and the TVL is around $10.3 billion which implies that that valuation is 0.5. For ONDO it’s 15. It’s 100 times greater so 0.5 is heavily undervalued where the regular valuation needs to be around 0.5 to 1 which implies that there’s a whole lot of momentum to be made in,” he explained.

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#3 RENZO

Along with AAVE, Van der Poppe brought attention to RENZO, one other DeFi asset that, despite being in a downtrend, shows signs of reaching a lower valuation boundary that would attract speculative interest and potential upside. He described RENZO as a higher-risk investment in comparison with AAVE but noted that the asset’s significantly lower valuation in relation to its TVL could present a compelling buy opportunity for risk-tolerant investors.

“I need to point out you RENZO which currently has a market cap of $50 million, fully diluted $440 million, however the TVL which we will see on DefiLama is $1.3 billion. So in that aspect that valuation is even lower than AAVE but there may be also more risk implied by investing in such an asset,” the analyst said.

#4 AEVO

Finally, Van der Poppe turned his attention to decentralized exchanges, specifically AEVO. He described AEVO’s unique position available in the market, offering sophisticated trading options equivalent to prediction markets, options, and hedging. “AEVO may be very likely making a bullish divergence and a falling wedge, and is probably going going to reverse from here,” he assessed, indicating potential upcoming growth potential.

“These are my primary bets that I need to take going forward on this market and in the following few weeks,” van der Poppe concluded.

At press time, TAO traded at $294.22.

Bittensor price, 1-day chart | Source: TAOUSDT on TradingView.com

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