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

Federal Reserve Pauses Interest Rate Hike for Upcoming FOMC Meeting

The Federal Reserve is not expected to raise interest rates at the upcoming FOMC meeting, as indicated by recent forecasts and comments from Fed officials.

user avatarMaria Fernandez

Citigroup Increases Price Targets for Bitcoin and Ethereum

Citigroup has raised its 12-month price targets for Bitcoin to $113,000 and for Ethereum to $3,028, citing stronger activity in crypto markets and ETF inflows.

user avatarGustavo Mendoza

TopNod Introduces Axil Pot APT for Enhanced Onchain Yield Management

TopNod has launched Axil Pot APT, a new onchain yield vault that allows users to earn an estimated 8% APY while maintaining instant liquidity.

user avatarRajesh Kumar

MEXC Expands Guardian Fund with Additional 1,000 BTC

MEXC has added another 1,000 BTC to its Guardian Fund, marking the second major allocation this year.

user avatarMiguel Rodriguez

HANetf and HSBC Launch First GBP EUR-Hedged Bitcoin Products

HANetf and HSBC have announced the launch of the first GBP EUR-hedged Bitcoin products, marking a significant development in the digital asset ecosystem.

user avatarLuis Flores

Goldman Sachs Integrates $100 Billion Treasury Fund with Crypto Institutional Frameworks

Goldman Sachs has announced the integration of its $100 billion Treasury Fund with crypto institutional frameworks, marking a significant development in the digital asset ecosystem.

user avatarArif Mukhtar

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.