3 Popular Altcoins With Annual Returns of Up to 49%

Waiting for the market to move is a pain. Here are some altcoins where you can earn nice gains while you wait.

If you have mostly held Bitcoin over the past six months, you should be feeling pretty good. Bitcoin is only down 21% from its all-time high (quite a small drop for a correction) and things are looking good — rate cuts are coming, Bitcoin reserves are at multi-year lows, and we’re trading around $50, while the Fear and Greed Index shows the level of fear (a great contrarian indicator).

On the other hand, if you hold a large position in altcoins, you may not be feeling so optimistic today. Blue-chip altcoins (ETH, SOL, TON, ADA, etc.) are trading 35-55% below their March peaks, while riskier altcoins are trading down 60% or more since March. And if you were unfortunate enough to buy some of the newer tokens (ALT, ENA, ZKL, etc.), you may be feeling that way.

Nevertheless, you may still be holding on to some of these tokens, hoping for a rebound when the market takes off again. If you feel the same way as Wojak, I have a few thoughts as well.

I wouldn't dare double down on most of the shitcoins, but I have identified a few coins that have a good probability of rebounding and could yield good returns in the meantime. Sometimes when your portfolio is struggling, it's comforting to get a little yield. And if these coins rebound, you now have a chance to increase your assets and double your holdings.

It's hard to advocate investing heavily in altcoins, but sometimes, the hardest to buy are often the most profitable. So if you're a depreciator with some funds left, here are some opportunities to consider. Coin #1: Brett Current Market Cap: $790M, Currently Trading at $0.079 (59% below all-time high), Lending Yield: 23.8% Bullish Thesis: Pump.fun has effectively eliminated all fun from memecoin. Extracting millions in degen liquidity has had a negative impact on the crypto-native community. This is reminiscent of how Blur drained away a majority of the market cap from NFTs. But while the low-cap memecoin market has lower odds than winning your state lottery, blue-chip memecoins can still offer strong gains. Brett has the highest market cap of all memecoins in the Base ecosystem. I expect it to perform well when the market heats up and be easily accessible to the millions of Coinbase retail customers who want to get on-chain.

Today, you can lend Brett at https://legacy.seamlessprotocol.com/ and earn a good return. Borrowed Brett cannot be used as collateral, and whenever you lend in decentralized finance, remember that you are always taking on additional risk. Coin #2: Aero Current Market Cap: $350M, Currently Trading at $0.57 (75% below its all-time high), Lending Yield: 49% Bullish Thesis: Like Brett, Aero is one of the highest valued tokens in the Base ecosystem. I’m not generally a fan of flooding the market with tokens as rewards, but a 49% yield is nothing to sneeze at. And, like Brett, if Base successfully scales as it has, Aero will surely see more buyers who don’t fully understand the token economics.

Base has no native token, so owning a top decentralized exchange (Aero) and a top memecoin (Brett) seems like an excellent proxy strategy. The underlying Base ecosystem should favor both altcoins.

You can lend Aero right now at https://app.extrafi.io/lend. It's important to realize that Extra will lend tokens to the point where sometimes you can't withdraw them. For example, 90% of the Aero supply is loaned out. If it reaches 100%, you can't withdraw your tokens. If you're lending large amounts or tend to over-trade, keep an eye on the utilization rate.

Coin #3: Arb

Current Market Cap: $1.8B, Currently Trading at $0.52 (78% below its all-time high), Lending Yield: 13%

Bullish Thesis: Ethereum is committed to Layer 2, and I doubt that will change in the foreseeable future. Now that they have the infrastructure, it’s just a matter of gaining adoption, and Arbitrum appears to be the leading L2 for DeFi adoption.

With over $2.5B in total value locked and 698 protocols, Arbitrum is one of the leaders in the L2 race. The team seems to be strategic, and Arbitrum has the advantage of being one of the first L2s to market. If Ethereum becomes wildly successful, it should have a positive impact on its layer 2, and I expect and hope that the price of Arb will go even higher.

Today, you can lend Arb through Lodestar at https://app.harvest.finance/. The 13.6% yield is not great, but I believe the risk/reward ratio of the Arb token makes it more attractive than many altcoins.

Key Takeaways

If you hold any of these altcoins in your portfolio, you may want to consider these lending opportunities. None of them require a lockup period, nor do they require converting your tokens to veTokens or esTokens, thereby ensuring that you are a holder.

If you do not hold these tokens and are willing to take on the additional risk, they have performed well during the altcoin season. The safest investment in our market is Bitcoin, as always, so if you are risk averse, you may want to accumulate larger assets such as BTC, ETH, or SOL.

It takes courage to buy any cryptocurrency on the market. These tokens have all fallen 59% or more in the past six months, which is not going to get anyone excited when looking at the charts. However, for those who have the confidence and are willing to take on more risk, these opportunities can be very lucrative.

I own all of the crypto assets mentioned in this article - BTC, ETH, SOL, AERO, BRETT, and ARB. This information should not be considered investment advice. I am not qualified to give financial advice, just like I am not qualified to debate a presidential candidate. Digital assets such as cryptocurrencies and NFTs involve risks, so due diligence should always be performed before investing. Lending platforms also add more risks; users should research and understand the risks before using them.