Overall, Layer-2 Blockchain protocols have grown tremendously over the past few months. Tokens associated with related networks recorded stellar performances in 2021. However, Ethereum-compatible Layer-1 blockchains such as Cosmos, Tezos, and Polkadot are starting to take the stage. The aforementioned altcoin projects also brought their investors with pretty solid returns last month. So, what are the next altcoins that can continue the Solana rally? 2 crypto experts answer…

Which altcoin is a better choice?

To answer that question, it’s important to look at the status of a few metrics, according to Lavina Daryanani. For starters, the “stock-to-flow” model (Stock-to-Flow) reflected values ​​of 10.01 (DOT), 13.76 (XTZ), and 16.33 (ATOM) at the time of writing. The S2F model can measure the value of a particular crypto by taking into account parameters such as aggregate supply and annual production.

A higher value means less supply entering the market and, in retrospect, more frequent. The same thing eventually helps the altcoin price go higher. Given the data we touched on above, ATOM is clearly leading the race, followed by XTZ and DOT respectively.

As for risk-adjusted returns, Cosmos again held the lead, followed by Tezos and then Polkadot. However, it should be noted that the Sharpe Rate (Sharp Rate) of altcoin projects shows 5.6, 4.6 and 3.9 at the time of writing.

Additionally, the 30-day average volatility of the three altcoins remained well below 2, making the sustainable growth environment quite favorable. A volatile market often opens the door to dramatic price action in both directions, but moderate levels often fuel an uptrend rather than a downtrend.

Also, the developmental activity on related blockchains has been quite impressive lately. The working speed on GitHub was also generally sufficient for these altcoin projects. All three altcoins, if held for the long term, will add great value to investors’ portfolios. However, when it comes to the short term, analyst Daryanani says Cosmos (ATOM) is a better choice based on its metrics.

Cosmos (ATOM) technical analysis

On the technical side, Cosmos seems pretty clear, apart from a few resistance levels around $30 and $31. Volumes for altcoin ATOM are increasing and trading well above the MAs. If the buying pressure intensifies further, traders can expect ATOM to surpass its May peak in the next few trading sessions. Failure to do so could result in ATOM price returning to around $27.

In the last part, Cryptocoin. com

Michael van de Poppe, whose analysis we share as , claimed the same thing as analyst Daryanani in a recent video and said:

If I had to pick an altcoin to follow Solana and it had to be a tier one solution, it would be Tezos, Polkadot or Cosmos, and given its structure, it looks great.

Tezos and Polkadot, which were trading at $7.77 and $36.18 at the time of writing, were also quite close to May’s ATH levels of $49.7 and $8.4.

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Michael Lewis


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