What is a reasonable valuation for an altcoin? Are there any altcoins in this market that have fundamentals? What are fundamentals, consensus, revenue, or something else?
Just think about it, and you will realize that consensus and revenue cannot explain much. It is normal for revenue-generating products to drop 90% during a bear market because income in the crypto space also follows the bull and bear cycles.
At the most fundamental level, there is one thing: liquidity.
⭐ Macroeconomic Liquidity
Macroeconomic liquidity, primarily based on the US dollar system, will set an anchor for the overall risk market.
⭐ Comparison of Valuations of Similar Projects
A common practice is to compare the valuations of similar projects, such as public chains, DeFi blue chips, and memes, which will have a rough valuation anchor over a period of time.
⭐ Vertical Hotspots
Over a certain period, there will always be some hot sectors that benefit from liquidity premiums.
For example, DeFi in 2020, NFT in 2021, inscriptions in 2023, Sol memes in 2024, and AI.
So, what is a reasonable market value for an altcoin? It completely depends on the liquidity pricing in these three areas.
This is the only fundamental.
So, does the saying "price will return to value" apply to the crypto space? I think it can only apply to a few limited coins.
All other altcoins have no value, only liquidity pricing, looking at macro factors, categories, and hotspots.
