Looking back at our article you will notice 5 picks that we have mentioned a lot. Solana which is in both of our 2022 test portfolios, and 4 tokens that heavily outperformed Ethereum for Q4. Solana did have some losses vs. Ethereum but we did not really start dollar-cost averaging the token until the past two weeks. However, we will take credit when it is due (or when we are wrong) and point out all the data as unbiased as possible. It is important to compare alt coins to Ethereum and not USD because Ethereum is the market leader for these tokens. Ethereum in the long term tends to outperform most alt coins. Only a select few bring you higher Ethereum multiples in a given time frame. This ties into the grand scheme of the crypto investor strategy. If you buy an alt coin and it performs twice the price action of Ethereum in a time frame, and you flip it back into Ethereum, you have just doubled your investment!
Solana is down about .01 Ethereum per token since Nov. 9th, this is not a tremendous opportunity cost, the entire market is bleeding this week. With that said you will notice we have started mentioning Solana a lot lately, we believe it will remain a top contender for the year, and a safer pick than medium/small market cap tokens.
Avalanche has performed exceptionally well, we started covering this project in the summer and are up many multiples, this token also made it to the safer, and free list for 2022. Avalanche continues to build partnerships and solidify itself in the space. Our team also might be working with Avalanche in the near future, more to come on that soon.
Terra Luna is another token we have written about very often, we remain very excited about the ecosystem. Its performance against Ethereum is outstanding and it continues to offer a low risk APY on stable coins on the anchor protocol. We believe this token will continue to grow, and it has also made it to our 2022 safer list to track.
Polygon’s MATIC token is perhaps one of our best performers for the year since we actually bought into the project hard all year. MATIC also made it to the 2022 list and continues to build, it even has more network activity than Ethereum on some days. MATIC is part of our Ethereum thesis and has some of the best developments and partnerships in the space. MATIC absolutely crushed gains against Ethereum during this time frame.
Another token we have been buying all last year is Harmony ONE. ONE has performed greatly, add that to the staking rewards and the opportunity has been very lucrative. ONE did not make it to our 2022 safe list but remains an amazing ecosystem to get involved with. ONE still remains a great pick but we felt it had been so hot the past few months we would go with others.
There you have it, 4 out of 5 our picks to outperform Ethereum for the Quarter did so, this is not common for alt coins. Generally the opportunity cost of leaving Ethereum for an alt coin brings on incredible risk. We believe we are getting better by the week at noticing general market narratives and getting into them relatively early. Please check out our prime subscription which shares all of this research. We aim to assist the average crypto investor in cutting down research time and increasing confidence in the market.