Amid the market crash of recent weeks, cryptocurrency analyst Michaël van der Poppe provided that analysis of Bitcoin’s trajectory and its impact on altcoins. His remarks focused on Bitcoin’s dominance and the readiness of altcoin markets, especially in sectors like artificial intelligence (AI) and decentralized finance (DeFi), for a potential rebound and significant growth.

Van der Poppe began his analysis by discussing Bitcoin’s dominance, a metric that reflects Bitcoin’s market capitalization relative to the overall cryptocurrency market. The analyst noted that contrary to popular belief, Bitcoin’s current state of dominance does not herald the beginning of a bear market.

“Bitcoin’s dominance is not at the beginning of a bear market, but at the end of a bear market and potentially at the beginning of a bull market,” he said. This observation is critical because it suggests that bitcoin’s market influence is stabilizing, potentially setting the stage for an altcoin rally and capital flowing into small-cap cryptocurrencies.

Best Altcoins to Buy Now

Focusing on strategic investment opportunities after the crash, Van der Poppe emphasized the importance of selecting altcoins based on sector strength and market recovery potential. He noted that AI and DeFi are two sectors where growth could be the most explosive due to fundamental technological advances and increased exploit cases. Within these sectors, he identified specific tokens that demonstrate characteristics of resilience and high growth potential.

#1 TAO

TAO, a token in the AI ​​sector, is singled out by van der Poppe for its solid performance in recent weeks, showing a remarkable 70% rebound from its lows. “TAO is a super strong asset in the AI ​​sector and has shown a 70% rebound from its lows,” he noted.

The rebound is significant because it reflects growing investor interest and confidence in AI technology in the blockchain space. Van der Poppe predicted an sanguine future for TAO, suggesting that “this is something that could go another 5x to 10x from now on,” based on its current trajectory and market interest.

#2 GHOST

Shifting focus to the DeFi sector, Van der Poppe recommended AAVE, a token that has shown significant strength against Bitcoin and USDT. “AAVE has a fairly standard to beautiful accumulation against Bitcoin; it’s making new highs against USDT and consolidating ahead of a big breakout.”

He highlighted AAVE’s relative undervaluation by comparing its total value locked (TVL) to its market cap. “If we look at TVL versus market cap, the market cap of a is $1.5 billion, and the TVL is about $10.3 billion, so that valuation is 0.5. In the case of ONDO, it’s 15. It’s 100 times larger, so 0.5 is very undervalued, whereas a regular valuation should be about 0.5 to 1, which means there’s a lot of momentum to play with,” he explained.

#3 RENZO

In addition to AAVE, Van der Poppe highlighted RENZO, another DeFi asset that, despite its downtrend, is showing signs of reaching a lower valuation threshold that could attract speculative interest and potential growth. He described RENZO as a higher-risk investment compared to AAVE, but noted that the asset’s significantly lower valuation relative to its TVL could present an attractive buying opportunity for risk-tolerant investors.

“I want to show RENZO, which currently has a market cap of $50 million, fully diluted $440 million, but the TVL that we can see on DefiLama is $1.3 billion. So in that respect, the valuation is even lower than AAVE, but there is also a higher risk involved in investing in such assets,” the analyst said.

#4 AGE

Finally, Van der Poppe pointed to decentralized exchanges, particularly AEVO. He described AEVO’s unique position in the market, offering advanced trading options such as prediction markets, options, and hedging. “AEVO is most likely forming a bullish divergence and falling wedge, and it will likely reverse from there,” he said, indicating potential upside potential ahead.

“These are my main bets that I want to place in the future in this market and over the next few weeks,” concluded van der Poppe.

At the time of going to press, TAO shares were trading at $294.22.

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