Recently, the altcoin market has become a major source of concern among investors and analysts. Expectations that altcoins will make a major bull run at the beginning of 2024 contradict current market conditions. While Bitcoin (BTC) increased its dominance towards the last quarter of 2024, many altcoins failed to realize the expected rise. Although some altcoins have returned to higher price ranges, the general mood has shifted towards new asset classes.
Similarity in altcoin prices in 2020
Famous crypto analyst Benjamin Cowen suggests that altcoins will follow a similar course to the market crash in 2020. While it is remembered that the entire market fell to local bottom levels at that time, Cowen states that the final phase of this situation, which he calls the “altcoin showdown”, may occur very soon. Altcoins have been losing value for a long time, and this creates distrust among investors. It is also possible that a deeper correction will occur towards the end of 2024.
Investors’ confidence is also reflected in the investment rounds made in the market. Venture capital-backed projects continue to attract seed rounds, albeit at a slower pace. However, it is predicted that previous VC-backed tokens will cause huge fluctuations in the market with large unlocks. It is stated that long-term projects such as XRP and Cardano (ADA) are still in the proving phase.
Success of TRON and other altcoins
Although some well-established names of the market have achieved certain successes, for example, TRON (TRX) approached its peak levels in 2018 and reached $ 0.17. This success was achieved through regular token burning and a deflationary supply. However, looking at the overall picture, there are increasing signs that some altcoins will not return. Projects either change direction or fail. Valuable altcoins such as Ethereum (ETH) and Solana (SOL) maintain their prices but cannot move to new price ranges. Therefore, capitulation in altcoins may cause investors interested in these assets to lose interest. However, some analysts are hopeful that there may be a new bullish season in early 2025. This time, the market may be stimulated with a new asset selection.
A new trend that has spread recently on social media is that crypto assets are becoming community-oriented. While investors increase interest in meme tokens, this may cause altcoins to enter a transformation process as well. The altcoin index is created by tracking the top 100 assets by market cap, but this list may change with new technological trends. While meme tokens have begun to attract the attention of investors, altcoins are also trying to get their share of this trend. Altcoins, which offer quick returns and profit opportunities, still stand out as an attractive option for many investors. However, many of the most established assets are past their most active growth phases. Murad Mahmudov states that the demand for meme tokens is greater than for altcoins.
