Cathie Wood: Just 3 Altcoins—Right or Wrong?

Cathie Wood just made another big proclamation on the popular CEO Diary podcast. She said the only 3 cryptos you need are Bitcoin, Ethereum, and Solana.

So is she right with these altcoins? What do you think? Today, we look at this argument both for its strengths and its faults to decide for ourselves.

The Pro Case for Cathie Wood

First of all, Cathie Wood is a big voice bridging TradFi and our industry. So when she talks, people listen. Her ARK Invest ETFs are among the most popular in the industry. Her Bitcoin ETF is the 4th largest, behind only BlackRock, Fidelity, and Grayscale.

Her voice is enough to move markets, but not in the long term. Here’s her pro-Bitcoin argument saying Bitcoin will 15x in the next 5 yrs. She believes Bitcoin will grow that fast and yet also become less volatile than it’s been as the asset matures and gets larger.

And she goes on to say, as you saw at the top, that she likes Ethereum and Solana as well. Yet she thinks Bitcoin will outshine them both and be the most successful.

So as far as Bitcoin goes, we agree. That’s why we continuously pound the idea home that you need some in your altcoins portfolio, even if you have mostly alts. That Bitcoin and Bitcoin alone are approaching an all-time high is no accident.

Ethereum

Now, the Ethereum case is a little less clear. It’s the very clear home for DeFi and, so far, RWA. More apps and protocols call ETH home than any other chain, including other EVM chains.

Institutional interest in ETH has been inconsistent. Especially when you compare it to Bitcoin. But that said, institutions currently want it, and the ETFs are filling up with ETH.

Solana

Solana is a pretty clear winner this cycle. They were the darling of the last cycle and proved their resilience, climbing back from $9 and all the FTX mess of the last bear market. It’s cooled off quite a lot from its recent high of $262 to its current price of $159.

Sol Strategies, which builds Solana infrastructure, is the first publicly traded company to develop a Solana Treasury policy a la Saylor with Bitcoin. They likely won’t be the last. A Spot ETF is coming soon, if we believe Polymarket and the idea of the wisdom of the crowd.

Solana is the fast-growing home in crypto for NFTs, memecoins, and more sectors every month. If anyone outside of Ethereum will become the leading smart contract chain, it’s Solana.

The reasons to hold these 3 are compelling. But only these 3? And no others? Let’s look at the other side of this argument.

The Con Case for Cathie Wood

Now let’s look at why Cathie Wood might be wrong. The Total3 chart, which shows the value of ALL crypto, excluding Bitcoin and Ethereum, sits at $865 billion. Yesterday alone, $159 billion changed hands in this market. 

This one stat shows us there’s a market for projects outside the Big 3. Now, Solana’s market value is $83 billion.  So if we take Solana’s market cap out of Total3, we are left with $865 billion minus $83 billion, or $782 billion. That’s $782 billion of market value that Cathie Wood says is unnecessary.

Even if she’s partially right that these are the 3 best projects, is that really to the exclusion of ALL others? Is there no value in stablecoin and payments chains like:

• Polygon.
• BNB Chain.
• Avalanche?
• The very clear product market fit of USDT on Tron?

Stablecoins alone are $250 billion of value, so the issuing and payment chains have to have SOME value, right? Then there are the 2 hottest sectors we talk about constantly here. AI and RWA. Yes, RWA is big on Ethereum. Big in fact.

But this would exclude most of the big RWA players. Most players are in a $40 billion sector. Ondo’s chain is an EVM chain. But many new appchains are building in RWA to ensure compliance with regulators at home for asset issuers. And that can be in or outside of Ethereum.

And then there’s AI. AI and AI Agents are a $36 billion sector combined. Are we excluding all of these and their potential just because they are not one of the Big 3? I could go on into other sectors like NFTs, DePIN, or gaming, but you get the point. The exclusion of all other projects seems silly.

Which Strategy is Best For You?

For most of us, the best strategy we can do is a mix of the two. Bitcoin, in particular, but the Big 3 generally, should be the foundation of your portfolio. Then, based on your expertise and research or trends, or however you decide, you add from there.

One thing Cathie Wood is right about is that project selection is key. Most evidence points to an altcoins season that will NOT be broad enough for most alts to rise. There are just too many coins and not enough liquidity. So, after the Big 3, what do you add? You know, if you’ve been watching this channel that we love big altcoins caps and their strong positions in the market. We also love AI and RWA.

So you could very easily create an excellent portfolio that crushes the market with a foundation in the Big 3, and then solid selections in AI and RWA, including large, medium, and small altcoins caps. And in fact, that’s what we recommend today and have done for most of the last 2 years.

So take Cathie Wood’s advice seriously. She knows what she’s talking about. But not necessarily literally. You may know more about gaming or NFT collections than she does. So do your research and create your killer altcoins portfolio.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; therefore, please conduct your due diligence. Copyright Altcoin Buzz Pte Ltd.