Crypto analyst Jamie Coutts says that the current correction in digital assets is likely a mid-cycle dip that could be taken advantage of.<\/p>\n
Coutts says on the social media platform X that Bitcoin (BTC<\/a>) and Ethereum (ETH<\/a>) have held up much stronger than other crypto assets, implying that a potential mean reversion is on the table for smaller projects.<\/p>\n \u201cSmaller cap crypto assets have been taking it on the chin since March high of this year. The past three months have seen the Top 200 equal weight index fall 33% vs. the Market Cap index, which is down around 12%.<\/em><\/p>\n This is the breakdown of the three-month sector returns from my crypto classification framework:<\/em><\/p>\n Smart Contract Platform -31.58% <\/em> BTC and ETH have held up -11% and 5%, respectively.<\/em><\/p>\n If this is a regular mid-cycle correction we are experiencing, which I believe is likely, then expect some opportunities to be had in the mid and small caps once the market settles.\u201d<\/em><\/p>\n When the rebound happens, Coutts says<\/a> decentralized artificial intelligence (AI) is another sector that has \u201cgenuine opportunity,\u201d but the analyst doesn\u2019t mention any specific coin or project.<\/p>\n Coutts also shares a chart comparing a declining price index of layer-1 smart contract platforms to an increasing number of their daily active users (DAUs). The analyst suggests that the divergence is one of the best signals of health in the crypto ecosystem.<\/p>\n \u201cWeb3 users seem less price-sensitive than in the previous cycle.<\/em><\/p>\n The number of daily active addresses (DAUs) on SCP (smart contract platform) blockchains is up 30% since March, while the SCP sector index is down approx 30%.<\/em><\/p>\n In a sign of how wild the last cycle was, prices are 37% below the all-time high, yet DAUs are 2.6x higher (4.2 million to 11.2 million).<\/em><\/p>\n One doesn\u2019t equal the other but if you are looking for a signal on the health of the crypto ecosystem, this is one of the best.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>   Generated Image: Midjourney<\/span><\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Crypto analyst Jamie Coutts says that the current correction in digital assets is likely a mid-cycle dip that could be taken advantage of. Coutts says on the social media platform X that Bitcoin (BTC) and Ethereum (ETH) have held up much stronger than other crypto assets, implying that a potential mean reversion is on the […]<\/p>\n","protected":false},"author":2,"featured_media":171131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-324797","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/324797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=324797"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/324797\/revisions"}],"predecessor-version":[{"id":324800,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/324797\/revisions\/324800"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/171131"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=324797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=324797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=324797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Infrastructure -43.28% <\/em>
Digital World -44.13% <\/em>
Digital Currency -31.59% <\/em>
DeFi -31.15% <\/em>
Applications -38.33%<\/em><\/p>\n
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<\/p>\nDisclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.<\/h6>\n<\/div>\n
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