TechFlow news — Former Goldman Sachs executive and macroeconomic expert Raoul Pal has put forward a new view, suggesting that low-circulating supply tokens could outperform in the upcoming cryptocurrency bull market.
Pal noted that although the market generally has a negative outlook on tokens with low circulation and high fully diluted valuation (FDV), such tokens typically fall more than 70% after initial circulation. After this phase, supply becomes a "known factor," and demand will then play a more important role.
As demand across the cryptocurrency ecosystem rises, tokens with growing demand but limited supply may have significantly greater upside potential during a bull market.
Pal emphasized that this phenomenon resembles past small emerging markets, which substantially outperformed broader markets during demand cycles. He cautioned investors that this strategy does not apply to all low-circulating supply tokens, and that the informational value of high FDV should not be ignored. Pal recommends focusing on tokens showing network growth and investor interest, which he believes could deliver the strongest performance over the next 18 months.
