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Rotating between large-cap and small-cap coins might be the key to outperforming Bitcoin in the current crypto market. Bitcoin (BTC) has surged above $100,000 in the past 24 hours, trading at $101,617.37 at the time of writing. Not just that, the digital asset has reclaimed the $2 trillion valuation and is just around 2% lower than its all-time high of $103,900. Since December last year, the digital asset has climbed 137.5%, according to CoinGecko.
For investors looking to outperform Bitcoin, diversifying your portfolio then becomes a must. Balancing large-cap altcoins for stability with low-cap altcoins for their explosive growth potential could be the winning strategy in today’s crypto market.
Bitcoin Accumulation Rises
Furthermore, the chart below shows Bitcoin accumulation on the rise following the recent market crash where the leading digital asset had dropped to the $94,000 price level. The increasing volumes suggest the BTC bull market is here to stay, at least for now.
Rotating Between Large and Small Cap Coins
To outperform Bitcoin and maximize altcoin profits, should investors rotate between large and small cap coins? A mix of large-cap altcoins for safety and low-cap altcoins for volatility and explosive gains can generate massive returns on crypto investments.
Read also: ETH/BTC Hits Key Trendline as Altcoins Face Flash Crash
Some large-cap altcoins with significant potential include Ethereum Name Service (ENS), Optimism (OP), Celestia (TIA), and Bittensor (TAO). Low-cap altcoins with strong chances of a price surge include Renzo (REZ), Omni Network (OMNI), Rocket Pool (RPL), and Aevo (AEVO). A portfolio that combines these digital assets can produce monumental profits.
Promising Large-Cap Altcoins
TIA should surge with the recent debut of the highly-awaited Ginger upgrade on the Celestia Mainnet Beta, which allows better performance and scalability. The altcoin is already up 36.92% in 30 days. Similarly, TAO, ENS, and OP should perform well, with TAO being one of the top AI projects and ENS and OP focusing on developing the Ethereum blockchain.
Low-Cap Altcoins with High Potential
On the other hand, OMNI has jumped 43.81% in the last month following the launch of its private mainnet and chants of “unf*ck Ethereum.” AEVO also has a bullish future as the project claims to be the world’s first high-performance DEX focused on options and perps trading. REZ and RPL should also push higher with Renzo’s Liquid Restaking Token (LRT) seeing high demand. Further, Rocket Pool’s ETH2 staking should also see similar adoption levels.
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