As crypto markets slowly recover, one analyst is warning investors to stay away from several popular crypto assets and sectors. According to him, many projects are still trading on old narratives despite weak fundamentals and limited value for token holders.
Here are the Top Seven Altcoins he won’t buy.
Cardano (ADA)
The analyst remains bearish on Cardano despite its loyal community and long history.
According to him, Cardano’s biggest problem is the gap between its valuation and actual on-chain activity. He pointed out that the network generates relatively low DeFi activity and app revenue compared to competing blockchains.
When compared with rivals like Solana, Cardano trails in stablecoin adoption, trading volume, and ecosystem growth. The analyst said ADA is still trading largely on narrative rather than real economic usage.
Governance Tokens
The second category on the avoid list is governance tokens.
The analyst argues that many governance tokens offer holders very little beyond voting rights. In most cases, founding teams and venture capital investors still control the majority of governance decisions, limiting the influence of retail investors.
Without fee sharing, buybacks, or revenue distribution, according to him, these tokens rely purely on speculation rather than fundamentals.
Layer-2 Tokens
Closely related to governance tokens are many layer-2 tokens.
Projects such as Arbitrum and Optimism were specifically chosen.
The analyst noted that while layer-2 networks themselves may be valuable, their native tokens often fail to capture the value generated by the ecosystem. In his view, many L2 tokens have underperformed because token holders receive little direct economic benefit.
Dogecoin and Pepe
Meme coins also made the list.
Although the analyst acknowledged that some traders have made life-changing gains, he warned that the vast majority of meme coins eventually collapse.
Projects such as Dogecoin and Pepe may survive due to strong community support, but he said most new meme coin launches are simply short-term speculation vehicles driven by insiders and social media hype.
Hyperliquid Competitors
The fifth category includes competitors to Hyperliquid.
The analyst sees Hyperliquid has already established a dominant position in decentralized perpetual trading through strong liquidity, high user activity, and growing network effects.
While newer exchanges may experience short-term rallies, he expects Hyperliquid to remain the long-term winner in the sector.
Low-Float, High-FDV Launches
Another area the analyst is avoiding is low-float, high fully diluted valuation (FDV) token launches.
These projects typically launch with only a small percentage of tokens circulating while assigning the network massive valuations. According to the analyst, this often creates a situation where venture capital firms and insiders gradually sell unlocked tokens into retail demand.
As more tokens enter circulation, prices frequently come under heavy pressure.
Litecoin (LTC)
The analyst also sees little reason to buy Litecoin.
Despite Litecoin’s long history, he argues that the network currently lacks meaningful differentiation and has consistently underperformed Bitcoin over multiple market cycles.
He said Litecoin’s investment thesis has weakened considerably as newer blockchains continue to innovate.
Zcash (ZEC)
Finally, the analyst remains cautious on Zcash.
While acknowledging Zcash’s early leadership in privacy technology, he thinks larger ecosystems such as Ethereum and Solana are increasingly integrating privacy features directly into their networks.
As a result, standalone privacy coins may face growing competition in the years ahead.
