Why New Altcoins of 2024 Underperformed

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Increase in Altcoin Market Cap
  2. Performance Issues of New Tokens
  3. Role of Institutional Investors


    4. As of September 16, the overall market capitalization of all fungible tokens stands at more than $2 trillion, with altcoins accounting for around $240 billion. However, many new tokens launched in 2024 have underperformed. Why is this happening?

    Increase in Altcoin Market Cap

    The market cap of altcoins grew by more than 70% in one year, aligning with the growth of Bitcoin and Ethereum. While Bitcoin and Ethereum dominate, the market includes millions of different altcoins. The number of altcoins has increased by 107% in one year, from 1.69 million tokens in August 2023 to over 3.5 million tokens today.

    Performance Issues of New Tokens

    Most new tokens launched in 2024 have underperformed. The main reason is fragmented consumer attention. With so many new tokens, attention to each one is greatly diluted, leading to weak price performance post-listing. In a saturated market, attention is the new currency.

    Role of Institutional Investors

    Tokens with institutional investors tend to perform better. Institutional investors can provide significant capital and long-term investment, contributing to price stability in the market. Examples of tokens with institutional support include TON, SOL, XRP, BNB, ADA, TRX, AVAX, SUI, and MOCA.

    The altcoin market offers significant opportunities for tokens that attract institutional investments. In a fragmented attention market, tokens with institutional support have a greater chance of success.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

SpaceX's Historic IPO and Billionaire Backing

chest

SpaceX's IPO in June saw its stock price initially soar but has since faced volatility, with significant investments from billionaires.

user avatarTomas Novak

Strategy Halts Bitcoin Transactions for the Week

chest

Strategy did not engage in any Bitcoin purchases or sales last week, maintaining its holdings at 840,447 BTC.

user avatarKaterina Papadopoulou

Fake Downloads of The Odyssey Spread Lumma Stealer Malware

chest

Security firm Bitdefender warns that pirated copies of The Odyssey are circulating with malware designed to steal cryptocurrency wallets.

user avatarMaya Lundqvist

Shiba Inu SHIB Gains Momentum with New Listings and Adoption

chest

Shiba Inu SHIB has been listed on the Australian exchange FameEX and is now usable at Dubai Duty Free airport stores, marking significant adoption milestones.

user avatarLeo van der Veen

Rise in Wrench Attacks Targeting Cryptocurrency Holders

chest

The report highlights a surge in wrench attacks, particularly in France, where criminals are targeting cryptocurrency holders.

user avatarAisha Farooq

Massive Data Breach Exposes French Tax Records

chest

A hacker is selling a large database of French tax records that could affect over 678,000 individuals and businesses, raising concerns about phishing and identity theft.

user avatarLi Weicheng

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.