How to help investors find the best altcoin when the market recovers

The “altcoin season” of the crypto market is no longer what it used to be. In previous cycles, the Bitcoin price surge paved the way for an explosion from altcoins, supporting almost every token. Now, the new market trend indicates that such growth momentum is gradually fading as analysts predict a more selective altcoin cycle.

In a recent interview, Hitesh Malviya, the founder of the crypto analysis tool DYOR, stated that retail investors looking for the next “winner” must adapt to these evolving trends.

How to Find the Best Altcoin in a Volatile Market

Traditionally, the altcoin season means a decrease in Bitcoin dominance and most altcoins surge.

“If the idea of a comprehensive altcoin season comes from previous cycles, then that is something I genuinely do not anticipate. What we have seen so far is simply the blooming and bursting of bubbles, occurring in two bull cycles and two bear cycles,” Malviya said.

Market experts predict a more complex phase, in which only the best projects will thrive. Instead of a rising tide lifting all boats, the next altcoin season may prioritize quality over quantity, focusing on projects with actual usage and revenue.

Investors should focus on fundamental factors such as usage levels, revenue, and community development as the market currently values substance over hype.

Indeed, interest in speculative areas such as memecoins has significantly decreased since the end of January 2025.

“The application curve will have a new upward shape, while the speculation curve will lose its appeal, resulting in lower volatility in the market, more stable profits, and making the market less correlated with stocks. This will create a new type of asset in the space, which will have two main types of assets: tokenized stocks with strong capital inflows such as: AAVE( and store of value assets )BTC, ETH(,” Malviya continued.

![])https://img.gateio.im/social/moments-7df0c7b1fab2298f102530033e33aa47(The power of crypto sectors in the past 90 days | Source: DYOA major reason for the development of the altcoin season is the liquidity that is currently flowing between different narratives.

Liquidity is flowing towards attractive sectors. There have been small altcoin cycles when certain themes become appealing such as: memecoins, AI tokens, DeFi projects, metaverse gaming, …

The flow of capital moves into these attractive sectors and then shifts to the next field. Smart investors monitor social media, developer activities, and news to catch emerging sectors and get in ahead of the crowd.

Malviya stated: “Liquidity will always flow into different sectors at different times, as there are many investment categories in the crypto space, just like in stocks, where some categories always outperform others. A similar market dynamic can also be found in the crypto market.”

How to find the best altcoin during the Altcoin season? Identify strength in a downtrend

Malviya believes that investors should monitor altcoins that show relative strength during downturns. If an altcoin can hold its value or even increase while Bitcoin is sliding, that resilience signals strong demand ) that could potentially accumulate soon(.

“DYOR provides a metric called Optimised Relative Strength, which helps track the best-performing coins and sectors that have shown the highest strength over the past 7, 30, and 90 days. Coins that have outperformed the overall market in the last 30 days will have a greater opportunity to recover when the market hits the bottom and begins a new bullish trend,” Malviya explained.

![])https://img.gateio.im/social/moments-81b255a8acca37a6f7e725e2c919a7e2(The top coins according to Optimised Relative Strength in the last 7 days | Source: DYORAdditionally, Malviya also discussed other fundamental metrics to keep an eye on. Including:

• DEX Volume: Higher trading volumes on decentralized exchanges can push the price of the token higher.
• Total value of assets locked )TVL(: Growth in deposits and TVL indicates user confidence, thereby driving price increases for the lending protocol’s token. ** Derivatives Trading Volume: Increased on-chain trading activity means more traders joining the network and higher token support fees.
• Oracle Total Value Secured )TVS(: When the total amount of TVL in protocols and platforms that use oracle to secure users’ funds increases, such as in the case of Chainlink, it will indicate a greater reliance on the network, driving demand for the token.
• DePIN Revenue: Actual revenue from a DePIN project )real service( signals a sustainable model, not just hype.

Moreover, Malviya also emphasized the tokenomics of a project. He believes that even a great project can fail if its tokenomics fail.

Tokenomics is the supply and incentive design of a token that can determine the success or failure of an altcoin project. Good tokenomics ) has fair distribution, strong utility ( creates lasting demand, while poor tokenomics ) leads to excessive inflation or continuous insider unlocking ( which often causes the project to fail.

“Ideally, community funds and ecosystems should receive at least 60% of the supply to create real demand for the product by encouraging developers and users through the phased release of tokens as planned. Tokens need to be genuinely created to drive real user demand for the product… In most cases, the final token price will determine the level of product adoption,” Malviya further explains.

Finally, he shared tools that could help users find the next “winner” for the altcoin season.

• DYOR – Users can use DYOR to find relative strength data on over 200 types of coins, tokenomics data on detailed demand across more than 70 projects, and fundamental data of over 65 different altcoins, along with detailed research reports on top projects.
• DeFiLlama – Track multi-chain DeFi data such as TVL and trading volume.
• Dune Analytics – This is a community-run platform that provides custom on-chain data dashboards.

“The community should learn to use DeFiLlama and DUNE to explore some interesting alpha projects. Most on-chain data is tracked on both platforms, and all users need to do is find the right dashboard, note various growth metrics from the project, and build their thesis using the obtained data, thereby creating better valuation outcomes,” Malviya concluded.

Investors need to self-learn and conduct their own solid research, as this is the best way to identify the best altcoins in the next altcoin season.

You can check the coin price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.

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Viet Cuong

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