Cryptocurrency expert Jamie Coutts suggests that the current dip in digital assets could be an opportunity for investors. Coutts, posting on X, notes that Bitcoin (BTC) and Ethereum (ETH) have shown resilience compared to other cryptocurrencies, hinting at a possible mean reversion for smaller projects.

“Smaller market cap cryptocurrencies have been struggling since the peak in March. Over the past three months, the Top 200 equal weight index has dropped by 33%, while the Market Cap index is down by around 12%. Here’s a breakdown of the sector returns from my crypto classification framework over the last three months:
– Smart Contract Platform: -31.58%
– Infrastructure: -43.28%
– Digital World: -44.13%
– Digital Currency: -31.59%
– DeFi: -31.15%
– Applications: -38.33%
BTC and ETH have only seen modest declines of -11% and 5% respectively. If this is a typical mid-cycle correction, as I anticipate, we can expect opportunities in mid and small cap projects once the market stabilizes.”

When the market rebounds, Coutts believes that decentralized artificial intelligence (AI) could present significant opportunities, although no specific coins or projects are mentioned. Coutts also shares a chart showing a decreasing price index of layer-1 smart contract platforms alongside an increasing number of daily active users (DAUs), suggesting that this divergence is a positive sign for the crypto ecosystem.

“Web3 users appear to be less sensitive to price changes compared to the previous cycle. The number of daily active addresses on smart contract platform blockchains has increased by 30% since March, while the sector index has fallen by approximately 30%. Despite prices being 37% below the all-time high, DAUs have more than doubled from 4.2 million to 11.2 million. While this doesn’t directly correlate, it serves as a strong indicator of the health of the crypto ecosystem.”

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