Since 2024, the altcoin landscape has been marked by a strongly bearish trend, and only a few rare cryptocurrencies manage to stand out. Indeed, only 8 altcoins among the vast array of 113 launched during this period are able to generate profits, raising questions about the future of the cryptocurrency market. The study of recent trends highlights a worrying reality for investors and blockchain enthusiasts.
Only 8 altcoins launched since 2024 generate profits
According to data provided by CryptoRank, it is alarming to note that almost all altcoins launched since 2024 are trading below their token generation event price (TGE). This situation is far from isolated, as most projects have resulted in significant losses for initial buyers. Of a total of 113 examined altcoins, only 8, those with a market capitalization of over 100 million dollars, manage to maintain prices above their initial TGE price.
Sign of a possible end of the market?
The bearish trend is not simply a fad; it rather demonstrates a certain weakening of investor confidence in the cryptocurrency market. Indeed, recent data suggests that despite promising launches, when analyzing the median valuation of the projects, there is a drop of 95.7% since their launch. This bleak picture is all the more concerning as it does not take into account the thousands of smaller launches that have never reached the market capitalization threshold necessary to be counted.
Causes of this worrying situation
Several reasons explain why the majority of altcoins fail to thrive. Firstly, many of these tokens were launched at prices deemed overvalued. This initial overvaluation was followed by scheduled token unlocks, thereby increasing the supply in the market while demand stagnated or even declined. This imbalance between supply and demand has resulted in falling prices, creating a hostile environment for investors.
Worrying and successful examples
A striking example is that of Worldcoin (WLD), which, after being one of the most publicized launches of 2024, is now experiencing a 97% drop from its peak, even with a pending Grayscale ETF request. This raises questions about the viability of new launches in an already gloomy economic climate.
Conversely, projects like Hyperliquid (HYPE) and Ondo (ONDO) show that there are indeed exceptions. Hyperliquid has seen its price soar by 1,519% since its airdrop in November 2024, remaining one of the few successes, largely due to a solid economic model based on generating real fees. Ondo, while benefiting from a 101.4% increase, is still very far from its past peaks, showing an 81% drop since its December 2024 high.
This fluctuating landscape prompts reflection: at a time when only a handful of altcoins succeed in generating profits, investors should be particularly vigilant in their choices while keeping an eye on market developments. For a more in-depth analysis of promising altcoins, feel free to consult recent articles on opportunities and trends in the sector, such as those on the Clarity Act, the recommendations from Grayscale, or analyses around tokenized stocks.
