After experiencing a surge in the first quarter of 2024, it appears that most altcoins have reached their peak. Numerous projects have seen a significant decline in value since their highest points in March 2024, with losses ranging from 70% to 90%. The latest data reveals that the total market value of cryptocurrencies, excluding Bitcoin and Ethereum, has returned to levels last seen in December 2023. This decline essentially erases all the gains made since the beginning of the year.
Notable figures in the crypto space have shared their thoughts on the situation. Andrew Kang, a crypto investor, believes that nearly all altcoins have reached their peak in the current bull cycle. However, he remains optimistic about memecoin projects, which may defy the broader market’s downward trend and potentially create new peaks in the fourth quarter of 2024 and the first quarter of 2025.
In contrast to the declining performance of most altcoins, memecoins have shown remarkable resilience. Memecoin analyst Murad Mahmudov predicts that memecoins will dominate the next altcoin season. This indicates a shift in investor sentiment, as institutional investors primarily focus on Bitcoin and Ethereum, while individual investors are turning to memecoin projects.
Data from the crypto analysis platform DYOR highlights the superior performance of memecoin projects during market volatility over the past 90 days. Memecoin projects demonstrated notable resilience, with a relative strength of -0.37, compared to other sectors like Web3 gaming (-1.32) and Layer-2 and Layer-3 technologies (-1.30).
Hitesh Malviya, the founder of DYOR, offered a critical perspective on the altcoin ecosystem, particularly those backed by venture capitalists. He argued that despite the initial promises of many VC-backed projects, they often fail to survive in the long term.
It is important to note that the information in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.
