After a long period of silence, the altcoin market is sending the first signals of a new growth cycle. However, as the wave of excitement begins to spread, influential analyst VirtualBacon advises investors not to rush. In a detailed post on X, he shared altcoin investment strategies, macro perspectives, and important tips to help investors shape their actions in this sensitive transition period.
The altcoin market is entering its acceleration phase
According to VirtualBacon, each price increase cycle of altcoins often follows a repeating pattern: Bitcoin kicks off the trend, followed by Ethereum and Solana breaking out, then new capital begins to spread to mid-cap and small-cap altcoins, and finally to meme coins.
Currently, the market is following this scenario. Data from April 1 shows that the overall altcoin index has increased by more than 27.23%, with Ethereum and Solana recording increases of 47.04% and 46.73%, respectively. Notably, many small-cap altcoins like PEPE, TAO, and SUPER have risen more than 40%, indicating that speculative capital is gradually spreading.
Not only based on technical factors, the current upward momentum is also backed by positive developments from the macro environment. A key factor is the '90-day ceasefire' trade agreement between the United States and China, helping to alleviate psychological pressure on financial markets, thereby increasing the willingness of speculative capital.
VirtualBacon also notes that the Global Liquidity Index – an indicator that often leads major price increase cycles – has just reached its highest level since 2021. This is an important signal indicating that capital is returning to risky asset markets, including cryptocurrencies.
Warning: Not yet a true 'altcoin season'
Although the market shows strong signs of recovery, VirtualBacon remains cautious. According to him, until the Federal Reserve (Fed) officially announces the end of the quantitative tightening (QT) cycle, what is happening is merely a technical recovery – not a complete 'altcoin season.'
In other words, the market is still in a 'finding its way' phase, where price increases interspersed with strong corrections can occur at any time.
Top altcoins to watch: Core priorities, avoiding risks
1. Ethereum & Solana – The 'giants' shaping market trends
Ethereum and Solana continue to assert their position as the main platforms in the blockchain world, thanks to a comprehensive developing ecosystem and strong support from the developer community. In the past 30 days, Ethereum has impressively grown by 61%, while Solana also recorded a solid increase of 37%. Not only are they the source of many DeFi, NFT, and Web3 trends, but both are also the preferred destinations for smart capital – strategic investors looking for sustainable value in the crypto market.
2. Potential Layer 1: ALGO and IOTA
In the context of a market increasingly focused on blockchain platforms with scalability and practical application, ALGO and IOTA are emerging as potential counterparts to XRP in the long term – particularly in the field of payments and enterprise solutions.
ALGO scores points thanks to attractive prices, abundant liquidity, and optimal tokenomics, suitable for investors looking for a stable, less volatile Layer 1. Meanwhile, IOTA is undergoing a strong 'transformation' by building a completely new Layer 1 network based on the Move programming language – a technological advancement expected to reshape how blockchains operate in the new era.
With upgraded technology foundations and a clear long-term vision, both ALGO and IOTA are well positioned to welcome the next wave of investment.
3. Solana ecosystem: JUP, BORG, and SAROS
The Solana ecosystem is witnessing a strong rise of core projects, with Jupiter (JUP) holding a central position in the DeFi field. As the leading swapping protocol on Solana, JUP not only ensures liquidity but also acts as a bridge between protocols, contributing to strengthening the decentralized financial infrastructure of the ecosystem.
Alongside this, BORG – a decentralized trading platform on mobile devices – is opening a new approach for Web3 users, with a smooth and optimized experience for smartphones. SAROS, with its DLMM (Dynamic Liquidity Market Maker) model, stands out thanks to its flexible market-making mechanism, suitable for high-volatility trading pairs.
All three of these names are reshaping how DeFi operates on Solana – from user experience to liquidity efficiency – and deserve close monitoring in the upcoming phase.
4. GameFi: SUPER – Stability and long-term growth
In a volatile field like GameFi, SUPER is emerging as a rare bright spot thanks to stable development and a clear long-term strategy. Not chasing short-term trends, the project focuses on building core value through community, sustainable game mechanics, and robust technical infrastructure.
In particular, the upcoming staking event is expected to create a strong boost for investment capital, as token holders have additional incentives to commit long-term and extract value from the ecosystem. With its current position, SUPER is not just a GameFi project — but a potential investment platform in the entertainment blockchain segment.
5. AI Crypto: TAO – 'Bitcoin' in the world of artificial intelligence
In the wave of combining artificial intelligence and blockchain, TAO is asserting its pioneering position and is likened to the 'Bitcoin of the AI field' – a symbol representing the beginning of a new technological trend.
In a short time, TAO has doubled in value from the bottom, thanks to two key drivers: the deployment of a subnet and the upgrade of tokenomics, laying the foundation for scalability and practical application. The project attracts attention not only for its growth potential but also for its long-term vision – building the first decentralized AI infrastructure supported by blockchain.
The intersection of the two strongest technological trends today – AI and crypto – makes TAO a strategic asset that needs special attention in the upcoming growth cycles.
6. Meme Coin: PEPE and PENGU – From trend to investment opportunity
Once considered a fleeting phenomenon, meme coins are now transforming into a genuine investment segment – and PEPE and PENGU are two typical examples of this trend.
PEPE has made a strong mark as its market capitalization soared from $2 billion to $5 billion in just one month, demonstrating unprecedented appeal from the community and speculative capital. This success is not only the result of social media effects but also reflects the maturity of meme coins in terms of liquidity, market confidence, and price retention.
Meanwhile, PENGU – with its loyal community and recent airdrop – is steadily accumulating at the current price level. The strong Internet culture factor combined with the potential for explosive growth after the accumulation period makes PENGU a noteworthy name in the high-risk but high-potential investment portfolio.
7. Real World Assets (RWA): AXL and CHEX
The RWA field is becoming a new hotspot in the crypto market, where blockchain meets traditional finance. In this trend, AXL and CHEX are two prominent names that investors are particularly interested in.
AXL scores points thanks to stable supply-demand factors: there are no significant token unlock schedules in the near future, helping to reduce sell pressure and facilitate sustainable growth. This is an important advantage in the context of many projects being hampered by token distribution pressure from teams and early investors.
Meanwhile, CHEX is gradually asserting its position in the traditional asset tokenization sector as it is compared to Securitize – a partner of BlackRock in deploying the BUIDL fund on blockchain. Being compared to major names in the finance industry shows CHEX's long-term potential and seriousness in its RWA market approach strategy.
As the concept of 'tokenizing everything' becomes increasingly real, AXL and CHEX are positioning themselves as reliable bridges between blockchain and the global financial system.
The altcoin market is entering a sensitive phase, where opportunity and risk coexist. The strong recovery of many projects does not mean that the 'altcoin season' has officially begun – and that is the key point in VirtualBacon's advice: 'Don't follow the crowd. Invest selectively, based on data and strategy.'
This phase is the time to sift through projects with solid foundations, sustainable tokenomics, and favored by smart capital. The names built from real value – not just based on hype – will be the winners when the market enters a true growth cycle.
'Altcoin season' may be approaching, but only investors with a long-term mindset, clear strategies, and steady psychology can reach the end of the journey. This is not the time for impulsive risks, but a time to calmly accumulate, wait for the right moment, and act decisively.
