Crypto is recovering right now, prices are forming up and products are being launched. Some speculation is coming back into the space.

In this article, we will explore some of the most high potential coins in October and also about the latest research from VanEck, suggesting #ETH to $50,000 per coin by 2030.

$BTC is a leading indicator in the #crypto market, and its price gains typically precede those of altcoins. Altcoins tend to follow Bitcoin's lead and outperform during the later stages of a bull market.

However, we are currently still in the accumulation phase before the bull market, and Bitcoin dominance is slowly decreasing as the entire crypto industry expands.

While some altcoins may outperform Bitcoin over shorter periods, historically, Bitcoin has been a more reliable long-term store of value. I still think Bitcoin has to be the foundation of every crypto portfolio due to its long-term potential.

Looking back at previous bull markets, we can observe fluctuations in Bitcoin dominance. During the previous halving in May 2020, Bitcoin dominance initially fell from around 64% to 57%. However, during the subsequent bull market, Bitcoin dominance eventually climbed to 70%. Altcoins, on the other hand, experienced significant growth during the last stages of the bull market.

Currently, it appears that Bitcoin and $ETH are leading the market recovery, with other altcoins lagging behind. Altcoins' performance will depend on how the market reacts in the coming months.

Vaneck Valuation Methodology for Ethereum:

It's important to consider the context that Vaneck & other such institutions benefit from increased trading activity and may present a more bullish perspective on Ethereum.

However, VanEck's focus on cash flow projections and fully diluted valuation calculations could be seen as more bearish for Ethereum, as they compare it to assets like gold, which also lack significant cash flow but derive value from its store-of-value characteristics.

A currency or store of value can potentially reach much higher valuations than assets valued based on equity valuation models. Bitcoin is heading towards a valuation in the trillions, similar to a currency, and Ethereum should aim for a similar status rather than solely being seen as a platform.

That's my personal opinion on this.

Next Bull Market:

In the next bull market, #Layer2 solutions will play a significant role. The development activities focused on layer twos are crucial for achieving scalability.

Ethereum, for example, experienced explosive growth in the previous bull market, but the number of users remained relatively small, and high transaction fees, reaching up to $50, hindered widespread adoption. To achieve true scalability and attract more users, layer twos will reduce transaction fees, allowing applications to reach a larger audience.

Layer twos are essential for the success of Ethereum. They may impact Ethereum's profit margins as users shift from paying higher fees on the base layer to lower fees on layer twos. However, scalability is crucial in the long run, and having competition among centralized organizations like Coinbase and Binance in building layer two infrastructure is beneficial.

These organizations already have a large user base and can drive the adoption of layer twos. Coinbase's Base and Binance's BNB chain and #opbnb are likely to continue their success due to their existing customer base and the development ecosystem they provide.

$OP is one of the layer two solutions being used by both Base and OPBNB. This infrastructure will enable the offering of low-cost products and services to a larger user base.

Ethereum is scaling massively, with various players building layer twos and launching applications that are expected to gain traction in the next bull market.

However, it's important to note that while some applications in the crypto space, such as Frinette, which gamifies price speculation, have generated significant fees, they cater to niche use cases. For mainstream adoption, applications like Twitter's subscriptions, allowing users to pay for access to private content, are more likely to be preferred.

Investments in layer two coins carry risks, as the primary purpose of layer twos is to reduce fees, making it challenging for layer two coins to maintain long-term value. In contrast, investing in applications built on layer twos presents opportunities to generate returns through fees and possible equity ownership.

In terms of investments, Ethereum is seen as a straightforward choice due to its ability to generate fees, while many other projects are primarily applications or businesses built on existing networks.

Ethereum, Bitcoin, #BNB chain, Base, and Arbitrum are among the networks expected to maintain their value. The decentralized nature influences the valuation of these networks. For portfolio diversification, Bitcoin and Ethereum are often considered essential holdings.

It is crucial to carefully evaluate opportunities in the cryptocurrency market, including the potential for altcoins that have experienced 80-90% declines.

Altcoins that have promising new applications and projects could perform well in a changing market environment.

Nevertheless, Bitcoin and Ethereum remain the most important foundations within a diversified portfolio.

Let us know your portfolio for the next bull market?

Drop it in the comments section & Why you think they outperform in the next bull run?

Have a great day ahead.🫶

Until next time...🫂