The cryptocurrency market is witnessing a resurgence of older altcoins like Ripple (XRP), Cardano (ADA), Stellar (XLM), Polkadot (DOT), and Cosmos (ATOM).
These assets, which have survived multiple market cycles, are outperforming many newer altcoins, despite having been overshadowed in recent years by the rise of memecoins and new narratives like AI and DeFi.
This phenomenon is not random. Three critical factors are the main drivers: high circulation rates, the return of experienced investors, and a generational shift in the demographic composition of crypto market participants.
High circulation rates provide stability
Older altcoins typically have a higher percentage of circulating supply. This means that older tokens are less impacted by inflation compared to newer tokens, which regularly release new units through staking rewards or minting.
As circulating supply increases, more capital is needed to sustain or drive up token prices. Holding assets with aggressive inflation schedules means you’re fighting an uphill battle, even in a bull market, Web3 researcher Stacy Muur explained.
For example, newer altcoins like Arbitrum (ARB) and Sei (SEI) are struggling with diluted token values. Meanwhile, established coins with stabilized supply dynamics are proving more attractive to investors seeking predictable returns.
This structural advantage becomes particularly evident during bull markets, when new capital flows in.
Ancient Coin Performance. Source: TradingView
Old investors are returning
The return of retail investors, especially those with prior exposure to crypto, is another key factor in the resurgence of legacy cryptocurrencies. These investors, typically in the 25-45 age range, often lean toward assets they are familiar with from previous cycles.
You may not like the meta of old cryptocurrencies, but certainly tokens that have survived multiple cycles and are listed on all major exchanges are more attractive to the average new entrant than the latest pumpfun that goes to zero in 12 hours, noted Awawat, a trader and angel investor at APG Capital.
This sentiment is reflected in the broad-based nature of the surge in older coins. Unlike past bull runs, where speculative assets like memecoins dominated, this cycle sees more risk-averse behavior. Returning investors appear to prioritize reliability and reputation over high-risk, short-term gains.
The market is going all-in on old cryptocurrencies from past cycles. Why? They’re the first ones people find when they Google crypto. They’re established names, said Crypto Nova, a well-known analyst.
Generation X and Generation Y lead the change
The generational shift in the crypto market is something everyone should consider. While Gen Z often gets involved through TikTok hype and meme-driven projects, their limited capital limits them from having a significant impact on the market. On the other hand, Gen X and Gen Y emerge as the dominant demographics shaping market trends. They tend to have more disposable income and financial savvy.
According to Stacy Muur, these generations are more likely to rely on platforms like CoinMarketCap to identify potential investments. They prefer well-known tokens with historical credibility over speculative projects. This shift in generational behavior has crucial implications:
Familiarity over novelty: Older investors feel more comfortable with established projects. Tokens are perceived as safer bets in an often volatile market.
Strategic Decisions: These generations are less influenced by social media-driven hype and instead focus on fundamentals like tokenomics and historical performance.
However, the revival of older altcoins signals a maturity in the crypto market. As the sector grows, investors increasingly value projects with a proven track record over untested newcomers. This trend also highlights the role of generational dynamics and macroeconomic factors such as inflation in shaping market behavior.
For investors in the current bull run, established coins with strong tokenomics and adequate community support remain a cornerstone of sustainable portfolios. The resurgence of legacy tokens is a reminder that in crypto, longevity often trumps novelty.
The article Old cryptocurrencies are on the rise – Understand the reason was first seen on BeInCrypto Brazil.
