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

Plex Media Server Vulnerabilities Exploited for Cryptojacking

Attackers are exploiting vulnerabilities in Plex Media Server to install unauthorized cryptocurrency miners and a Linux proxy backdoor.

user avatarTomas Novak

Super League Shareholders Approve Metaplanets Bitcoin Treasury Proposal

Super League shareholders approved a proposal for Metaplanets to contribute 2,100 BTC and $25 million to a new US-listed Bitcoin treasury platform.

user avatarKaterina Papadopoulou

Sophon Sets Withdrawal Deadline Ahead of Mainnet Shutdown

Sophon has set a deadline for users to withdraw their assets by November 25 ahead of the shutdown of its standalone chain.

user avatarMaya Lundqvist

Large Hyperliquid Trader Rebuilds Ethereum Short After Significant Losses

A trader on Hyperliquid rebuilt a substantial Ethereum short position worth approximately $16 million after incurring losses of around $469,000.

user avatarLeo van der Veen

Tron Surpasses Ethereum and Solana in Blockchain Fee Revenue

Tron has generated approximately $234 million in chain revenue over the past 30 days, surpassing Ethereum and Solana.

user avatarLi Weicheng

New Reporting Requirements Proposed for Crypto Holders in France

A proposed amendment would require crypto holders to declare self-custodied assets worth over €100,000, with penalties for non-compliance.

user avatarTenzin Dorje

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.