Current strengths and potential of ALTLAYER
AltLayer is a Rollup-as-a-Service (RaaS) protocol that all developers can use to create a simpler Layer 2 without having to spend time rewriting the source code from scratch. At the same time, Leadtrend Retaken Rollups are calculated at the current time.
=> The service is convenient, easy to access, and importantly, the Layer 2 trend will remain one of the major trends in the bull market, and there will likely be many, many Layer 2 launches. This can not only bring a lot of profits to the Altlayer project, but also bring a lot of benefits to the network.
vModular trend solutions and demand in the resonance market are surging. Altlayer is one of the few projects with a unique solution that is growing faster than others and is being used by partners for comparison.
AltLayer funding status
Seed round: Raised US$7.2 million from Polychain Capital, Jump Crypto, etc. on February 17, 2022, with a valuation of US$80 million.
Funding round: Raised $15.6 million from Binance Labs on August 4, 2023 at a $180 million valuation.
Private placement round September 2023: $15.6 million (investors not disclosed)
AltLayer’s backers are all large investment funds in the crypto market, especially when Binance Labs invested over $15 million. Special advisors such as Balaji Srinivasan, Gavin Wood, Sean Neville, etc...
Recently raised $14.4 million in a strategic round led by Polychain Capital and Hack VC, valuing the round at nearly $150 million
=> To evaluate capital raising, a very new segment in the crypto space right now is the Restaking space. As can be seen, $ALT is almost the first item, probably waiting to be activated before Eigenlayer starts.
Partly to educate users and first participants about the Restake trend, $ALT will definitely be a highlight, it is a very strong supporter and MM system, which is a special feature if you look closely. What the top coins have in common so far. The closest rating MM has is to compare to the Modular $TIA project and be in the same position, and only x10 with both Polychain Capital and Jump involved.
Altlayer Token Economics
The token economics are relatively reasonable, with a 20% allocation to the team and advisors. The total initial market supply represents approximately 11% of the total supply, with 5% for the Binance Launchpool, 3% for protocol development, and 3% for the ecosystem.
As of now, the total market supply is 12.35%, and starting around July 2024, the team, investors, advisors will be locked in for 6 months and start receiving tokens, increasing the total market supply by over 21%. Currently, Binance’s tokens are mainly allocated to teams and airdrops + Launchpool.
Start receiving tokens, increasing total market supply by over 21%. Currently, tokens are primarily allocated to teams and airdrop and issuance pools on Binance.
A closer look at the fund calls shows that token sales account for over 32% of the project’s total supply =>. MM has established an important position in the project in the short and long term. When the specific token release time is over, the number of circulating tokens is not large and MM will definitely collect them quickly, because only trading at the current volume level means In a short time, the number of Onair tokens will no longer be very large or even very small.
Altlayer Onchain
Currently, the market maker of $ALT is still actively accumulating to reduce external circulation supply, and there are two other large market makers participating in Altlayer, Wintermute and GSR, both of which are listed on Upbit. The project is still led by Polychain Capital and Jump. These market makers are making very high profits when investing, so it is only a matter of time before prices rise.
Action can be observed starting from Binance itself, when there is action to move supply to the exchange to balance supply and demand. Evidence shows that supply on exchanges consistently fluctuates at a low level of approximately 0.1x%.
Project trends:
Projects such as $FET and $TIA have similar trends. Although the project has not yet announced the mainnet launch time, especially regarding the $ALT staking function. But for now everything is still waiting for time, and everything the project has done so far confirms that if we move forward according to the roadmap, the current price is still perfectly acceptable and the supply will decrease over time.
Performance of $ALT:
The fire chart of $ALT also shows very strong performance compared to other projects in the same MC, confirmed by whales continuing to accumulate steadily without signs of unloading. Part of the strong volatility on the chart is due to MM causing price shock and driving the decline, the rest is mainly due to cash flow still being primarily absorbed in $BTC. There is nothing to worry about and add to. When everything is still in its infancy, there will be good entry prices and the position will be the same as the whales, but when it grows, there will certainly not be good entry points anymore.
Reasons to invest in $ALT:
- The current market value of the project is almost twice that of when it was first listed, with a market value of more than 500 million. The project still has great potential to reach a higher market value in the future.
- Eigenlayer is about to launch its mainnet in the second quarter of 2024 and is expected to be launched in April. At this time, most LRT-Fi projects have been confirmed to be listed in April, actively attracting cash inflows and restaking trends.
- Eigenlayer is the cradle of Restaking, and Dapps that provide AVS services such as $ALT are the birthplace of cash flow for the Restaking trend.
- The project has attracted many investment funds and recently raised an additional $100 million in funding, not just in investment funds but also attracting whales and users to deposit detailed mortgages into the project.
- The project’s current TVL has exceeded $11 billion, an increase of over $9 billion in just one month. Currently second only to $Lido with a TVL of approximately $3.5 billion, Restaking will become a huge trend, attracting more cash flow and user participation in the future.
- The Dencun update being EIP 4844, and specifically EIP 4788, was a major turning point for the aforementioned staking space $ETH, and the restaking trend is nowhere more favorable than for projects with the same trend like Eigenlayer and $ALT.
- The earning pool for $ALT gets snapped up every time it opens on Binance => Holding demand is high, attracting most of the community.
- The project also has a staking feature that follows current trends, and previous projects usually do the same, not only Stake to Earn, but also Stake to Airdrop. Potentially, the current Restaking trend is only outstanding with $ALT, and high rewards can be paid to the project's staking contributors. When projects with subsequent Restaking trends are launched, there will also be high returns.
Where are the risks?
The project is still in the testnet stage, and it is unclear when the mainnet will be launched. There are risks of delays, lagging roadmaps, and developers changing routes for various reasons.
Many projects launched after $ALT usually make improvements and become more efficient than previous projects, which is difficult to avoid and will result in a loss of market share, user support, and community attention.
The project still does not have a large number of customers, and current revenue is not high compared to other services in the industry. Since it is a new service, the project depends heavily on the flow of funds, market areas, and the $ALT service is relatively new and needs time to enter the market.
Since many MMs have participated in the project recently, it is entirely possible that MMs will trample on each other before dawn, which will affect weak retail investors because of FUDs (cattle herds fighting, flies and mosquitoes dying).
Seed and private placement prices have now reached relatively high profit levels, approximately 68 times and 30 times. But it is not too terrible, because not only retail investors, but also many funds sold their positions when the project was only at a profit level of 5 times, 10 times or lower, and the funds that came in later bought the positions of the previous funds, and they The profit level is relatively or not much different from the price position at the initial stage of the project's launch.
The chart has been obviously manipulated by MM. This causes the tokens to fluctuate within the range of 10-30%. Without FUDs, this reason may also cause most holders to choose to optimally sell the number of tokens in their hands. MM always teaches lessons many times, but when we apply them, the goods in our wallet no longer exist.
The other reason isn't exactly risk, because on the downside, people will often say that a project with so many people involved will be too heavy to add.
=> This is correct because this is how downtrends work, when it goes down TVL decreases, stablecoins decrease, users decrease, and funds decrease. But things are different in an uptrend
=> In the upward trend, more people will participate, and the project will grow and rise rapidly, because there is an influx of funds and a surge. New trends tend to attract more new people to participate, and MM also has many ways to legalize prices.
Uptrends are also under pressure as short closings and MM pressure will cause retail investors to buy back and even buy more at higher price ranges.
