Ex-Goldman Sachs executive Raoul Pal thinks one controversial sector of altcoins is primed to outperform other crypto assets in the coming months.
Pal tells his 1 million followers on the social media platform X that the crypto world “hates” tokens with high valuations and low initial circulating supplies, otherwise known as low float/high fully diluted valuation (FDV) tokens.
The analyst notes that market disdain tends to cause low float/high FDV tokens to fall by at least 70% on their initial float because future unlocks are already priced in, even though most unlocks don’t trigger large selling events.
“However, from that point on, supply is a ‘known, known’ so demand is the more important part of the equation…
If a token shows real demand growth (even early stage) either from network activity or even speculative interest, then demand will grow faster than supply for now and number go up.
With demand rising across the crypto ecosystem as the bull market phases of Crypto Summer and Crypto Fall take hold (alt season), tokens that are seeing increasing demand but tiny supply due to low floats will be more asymmetric to the upside in a bull market.”
Pal argues that these types of tokens are under-owned because of their bad reputations.
“Any increase in demand can move them much more than anything else due to the dreaded low float working in your favor. Don’t overstay your welcome. I will think more on this but from my experience in TradFi, this is the most likely outcome.”
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The post ‘The Most Hated Rally in Crypto’ – Former Goldman Sachs Executive Predicts These Altcoins Will Outperform Market appeared first on The Daily Hodl.
