Known in the market as “Altcoin Sherpa,” the analyst tells his 178,000 Twitter followers that he expects about 5% of altcoin projects to survive the current crypto winter. The analyst names smart contract platform Solana (SOL), blockchain scaling solution Polygon (MATIC) and blockchain-based video game Axie Infinity (AXS) as projects that can withstand the bear market in the long run. The analyst made the following statement:

   “Altcoins as portfolio diversification is always a bad idea in a bear market. Many of the projects in the market are no longer trustworthy. It is very important in this process to distinguish good projects from bad ones. My guess is that 5% of projects will survive. SOL, MATIC and AXS promising altcoins."

sherpa

Ethereum, SOL, and AXS also started to recover as Bitcoin crossed the $20,000 level again. Altcoin Sherpa says that many projects will disappear completely and for now it is only confident in investing in Bitcoin (BTC) and Ethereum (ETH). According to the analyst, the current market could trigger an even harsher correction. In this context, tremors reveal systemic problems in the market. Stormy times like these prove which projects are built on strong foundations. The analyst also stated that Bitcoin and Ethereum are the cryptocurrencies he trusts the most in the current environment. Analyzing the Bitcoin price, the analyst warns that losing the $18,000 support could trigger a new selling pressure for BTC. In this case, Bitcoin could drop as low as $12,000.

bear market

The cryptocurrency market is growing day by day. There are more than 19,000 cryptocurrencies and dozens of Blockchain platforms in the industry. The Terra crisis sent shockwaves through the market, raising the question of whether the thousands of cryptocurrencies in the market would survive. Bertrand Perez, CEO of the Web3 Foundation, told CNBC:

   “There are facts revealed by the Terra crisis. We are in an era of so many tokens and Blockchain. This is confusing for investors. As with the beginning of the internet, you had many “dotcom” companies, and most of them were scams, they had no value. In the end, they all collapsed . Only the reliable and strong survived.”

Brad Garlinghouse, CEO of Ripple, who continues the legal battle with the SEC, said that cryptocurrencies that can survive in the future will shape the financial world of the future. According to the manager, there are 19,000 projects on the market. However, there are only 180 currencies in the world printed by central banks. Guggenheim Chief Investment Officer Scott Minerd said last week that most cryptocurrencies are "garbage" but that Bitcoin and Ethereum will survive. This is a pretty pessimistic picture.