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- Insights
- Cryptocurrencies
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- Industry
- Geography
Crypto has seen a wave of new DeFi projects launch on the market, and on-chain analysts have reported fascinating findings that imply that this new generation of ERC20 coins will outpace projects from the last cycle. The data revolves around unrealized losses and the percentage of holders currently underwater.
New projects have a statistically lower percentage of underwater holders, meaning no sell walls on the way up from investors looking to exit their positions. The general effect of reducing sell walls can be seen with Ethereum (ETH). Following the transition to Proof of Stake, removing sell pressure from miners has led the coin to perform excellently. Whales are stacking up one project without underwater holders, DigiToads (TOADS), a Dogecoin (DOGE) competitor, to make bigger gains with their crypto portfolios.
When a new project raises significant sums in its presale, it always causes analysts to take notice, and the TOADS presale has already drawn in $5.8 million. Whales have been a significant driving force in this presale, and whales always target the top altcoins before retail. What do they know about TOADS they ordinary investors do not?
DigiToads' native token $TOADS, remains heavily undervalued because its value accrual mechanisms have not yet started, and whales have been taking advantage of this market inefficiency. The protocol offers an entire suite of DeFi products, including a native DEX, a play-to-earn game, a treasury management system, an educational platform, NFT staking, and even charity initiatives aimed at helping to save the rainforest.
But the tokenomics of $TOADS has attracted these more prominent investors. The Swamp (the DigiToads ecosystem) features a complex taxation system that automatically moves capital throughout the protocol accruing value for holders.
Entering and leaving The Swamp incurs the Toad Tax, and whales have bought $TOADS before the deflationary mechanism kicks in. Smart contracts burn 2% of each transaction, making $TOADS one of the most aggressive deflationary models currently in DeFi. The laws of supply and demand dictate that the price shoots up when supply dwindles. And price predictions from senior analysts align with this thesis forecasting a 900% surge for $TOADS by the end of Q3. These whales have spotted their opportunity and taken it.
On-chain analysts released interesting data on Dogecoin (DOGE), showing that the majority of holders currently face unrealized losses. Dogecoin (DOGE) has displayed other impressive on-chain metrics, such as an uptick in the number of holders, but what does this looming sell wall mean for $DOGE price action?
Analysts have forecast a range between $0.12 and $0.14 for Dogecoin (DOGE) in 2024, meaning a clean 2X from the current entry- reasonable gains, but not comparable to $TOADS. These analysts speculate that $DOGE will suffer from bagholders dumping as it begins to climb, dampening the potential for original memecoin to rally meaningfully.
Renowned Crypto Twitter user Miles Deutscher gave his take that $PEPE would outshine $DOGE this cycle due to less sell pressure on the way up. He also noted the effect of investor fatigue and the preference of crypto investors for newer, less exhausted projects.
Investors reading between the lines can tell that the best altcoins to invest in are new small-cap projects. DigiToads represents a prime candidate, and whales purchasing in droves marks a hyper-bullish signal for the protocol's prospects. All eyes are on the new generation, and will TOADS become one of the next cycle's best DeFi projects? Its current trajectory indeed suggests so.
