Altcoins
These Struggling Altcoins Could Soon Dominate the Market as Frontrunners
An analyst recently shared details on various cryptocurrency narratives, expressing confidence in the potential of meme coins, real-world assets (RWAs), and artificial intelligence (AI) as major players in the current cycle. Despite the current lack of popularity in gaming, analyst Miles Deustcher believes that this sector has the potential to see major growth in the future. However, in a counter move, the analyst has chosen to focus on a lesser-discussed altcoin sector that has been heavily beaten down but could emerge as a favorite as the market recovers.
Looking at year-to-date performance, the analyst said layer-one blockchains have shown mixed results. Solana and Ethereum recorded gains of 30% and 32% respectively, while AVAX suffered significant losses.
The worst performing category was new launches, particularly those backed by VCs with low free float and high fully diluted valuations. These tokens often launch at high valuations, leading to poor price performance.
However, there are some interesting developments happening in this sector. One example is Celestia, which despite being down 50% year-to-date, has seen a 40% increase in the last few days after major unlocks and FUDs caused a price drop.
Focus on Struggling Altcoins:
Celestia: With no new unlocks in months, the cryptocurrency has seen explosive growth. This pattern is not unique to Celestia; other altcoins with similar characteristics (decommissioning, solid tech, strong catalysts, and completed unlock periods) could also see a strong rally.
ZK Synchronization:Similar to Layer Zero, it doesn’t have an unlock for 11 months. It raised funds at a multi-billion dollar valuation, meaning current market prices are similar to those of its fundraisings. ZK Sync has started to break out of resistance levels, indicating potential for rapid expansion.
Athena:Currently valued at $6 billion, it launched at a significantly higher valuation. Its next release is in 8 months, and it has been heavily beaten down. This token is reflexive to funding rates, making it potentially explosive in bullish conditions.
Rune:This token performs poorly in an adverse environment, but exceptionally well in a bull market. It has shown potential for price recovery, making it an interesting addition to a watchlist.
Read also: Is this the next big altcoin in the next bull rally?