Raoul Pal, a former Goldman Sachs executive and renowned macroeconomic expert, has offered a fresh perspective on the upcoming cryptocurrency bull market, suggesting that tokens with low circulation may be poised for substantial gains.
Pal observed that while the market typically shuns tokens with low circulation and high fully diluted valuation (FDV), these tokens often experience steep declines of over 70% after their initial circulation. After this point, supply becomes a “known factor,” and demand emerges as the primary driver.
As demand within the cryptocurrency ecosystem surges, tokens with low supply but growing demand may witness significant upside during a bull run.
Pal drew parallels to small emerging markets in the past, which historically outperformed the broader market during periods of heightened demand. However, he cautioned that this strategy does not universally apply to all low-circulation tokens. Investors should remain mindful of the informational value of high FDV.
Pal’s advice centers on identifying tokens that demonstrate network growth and attract strong investor interest, suggesting that these may be the most promising performers in the next 18 months.
