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 Hiding Place 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, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Viral Mods Showcase Creative Game Merges

Several viral mods have gained attention, including Minecraft in Elden Ring and Spider-Man in Gotham City.

user avatarRajesh Kumar

Gamers Create Unique Video Game Mashups Using AI

Innovative mods combine popular video games in unexpected ways, showcasing the power of AI in game development.

user avatarGustavo Mendoza

Gate Introduces Gate Money for Integrated Financial Services

Gate has officially launched Gate Money, a globally integrated financial services application that combines digital assets, fiat currencies, stocks, ETFs, and payments.

user avatarLuis Flores

Gate and Visa Collaborate to Introduce Cryptolinked Card

Gate has announced a collaboration with Visa to launch a cryptolinked card, enhancing the use of digital assets in everyday transactions.

user avatarMiguel Rodriguez

HTX Ventures Unveils New Report on Financial Sector Convergence

HTX Ventures has released a report analyzing the merging of centralized finance, decentralized finance, and traditional finance into a new digital asset architecture.

user avatarArif Mukhtar

Polygon Open Money Stack Integrates TRON Network

Polygon Labs announces the integration of TRON network into Polygon Open Money Stack, enhancing payment solutions for businesses.

user avatarMaria Gutierrez

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.