The altcoin market has recently become a major source of concern for investors and analysts alike. Expectations that altcoins will enter a major bull run at the beginning of 2024 contradict the current market conditions. While Bitcoin (BTC) has increased its dominance as we approach the last quarter of 2024, many altcoins have failed to make the expected gains. While some altcoins have returned to higher price levels, the general mood has shifted to new asset classes.
Similarities in Altcoin Prices in 2020
Famous crypto analyst Benjamin Cowen suggests that altcoins will follow a similar path to the market crash in 2020. While it is remembered that the entire market fell to local lows at that time, Cowen states that the final stage of this situation, which he calls the “altcoin reckoning,” may occur very soon. Altcoins have been losing value for a long time, and this creates insecurity among investors. The possibility of a deeper correction towards the end of 2024 is not ruled out.
Investor confidence is also reflected in market investments. Venture capital-backed projects continue to attract seed rounds, albeit at a slower pace. However, large unlocks of previous VC-backed tokens are expected to cause market volatility. Long-term projects such as XRP and Cardano (ADA) are still in the process of proving themselves.
The Success of TRON and Other Altcoins$TRX
Although some established names in the market have achieved certain successes, for example, TRON (TRX) has reached $0.17, approaching its peak levels in 2018. This success was achieved with regular token burning and a deflationary supply. However, the general picture shows that there are increasing signs that some altcoins will not return. Projects are either changing direction or facing failure. Valuable altcoins such as Ethereum (ETH) and Solana (SOL) are having difficulty maintaining their prices and cannot move to new price ranges. For this reason, the capitulation in altcoins is having difficulty attracting the attention of investors interested in these assets. However, some analysts are hopeful that a new bullish season may occur in early 2025. During this period, the market may be activated by a new selection of assets.
A new trend that has been spreading on social media lately is that crypto assets are becoming community-oriented. As investors’ interest in meme tokens increases, this may cause altcoins to enter the transformation process. The altcoin index is formed by tracking the top 100 assets by market value; however, this list may change with new technological trends. While meme tokens are starting to attract investors’ attention, altcoins are also trying to get their share of this craze. Altcoins, which offer fast returns and earning opportunities, still stand out as an attractive option for many investors. However, many of the most established assets have left their most active growth phases behind. Murad Mahmudov states that the demand for meme tokens is higher than altcoins.