Jamie Coutts, a crypto analyst says the correction of digital assets could be viewed as a dip in mid-cycle that can be exploited.
Coutts claims on social media platform X, that Bitcoin (BTCEthereum (ETH() are holding up better than most other cryptoassets, suggesting that smaller projects may be in for a mean reversion.
Since March, smaller cap crypto assets are suffering. In the past three months, the Top 200 Equal Weight Index has fallen 33% against the Market Cap Index which is down about 12%.
Here is a three-month breakdown of sector returns using my crypto classification framework.
Smart Contract Platform 31.58%
Infrastructure (-43.28%)
Digital World (-44.13%)
Digital Currency (-31.59%)
DeFi -31.15%
Applications -38.33%
BTC has held steady at -11%, and ETH is at 5%.
“If this is just a mid-cycle corrective, as I think it is, there will be some great opportunities for mid and small cap stocks once the market settles.
Coutts will be there to help you when it happens. says Another sector which has decentralized AI is the field of artificial intelligence. “genuine opportunity,” The analyst didn’t name any particular coin or projects.
Coutts shares another chart that compares a decreasing price index for layer-1 smart contracts platforms with an increase in their number of daily active users. According to the analyst, the divergence between the two is one of best indicators for the crypto eco-system.
Web3 users are less price sensitive than previous cycles.
SCP’s sector index has fallen by approximately 30%, despite the fact that DAUs (daily active addresses) have increased 30% on SCP Blockchains since March.
The last period was wild, as prices have fallen 37% from their all-time peak, but DAUs (4.2m to 11m) are up 2.6x.
This is the most reliable indicator on the overall health of crypto.
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