Altcoins
These struggling altcoins could soon lead the market as frontrunners
An analyst recently shared details on various cryptocurrency narratives, expressing confidence in the potential of meme coins, real-world assets (RWA), and artificial intelligence (AI) as major players in the current cycle. Despite the current lack of popularity of gaming, analyst Miles Deutscher believes it has the potential for significant growth in the future. However, in a counter move, the analyst chose to focus on a lesser-discussed altcoin sector that has been heavily beaten but could emerge as a frontrunner as the market recovers.
Looking at year-to-date performance, the analyst said that layer one blockchains have shown mixed results. Solana and Ethereum have seen gains of 30% and 32%, respectively, while AVAX has suffered significant losses.
The worst performing category was new launches, especially those backed by VCs with low free float and high fully diluted valuations. These tokens often launch at high valuations, causing poor price performance.
However, there are some interesting developments in this space. One example is Celestia, which, despite being down 50% year-to-date, has seen a 40% increase in the last few days after significant unlocks and FUD caused the price to drop.
Focus on declining altcoins:
Celestia: With no new breakouts for several months, the coin has shown explosive growth. This setup is not unique to Celestia; other altcoins with similar characteristics (beats, strong technology, strong catalysts, and ended breakouts) could also see strong rallies.”
ZK Sync: Similar to Layer Zero, it has not had a breakout for 11 months. It raised funds at a multi-billion valuation, meaning that current market prices are similar to those during its fundraising rounds. ZK Sync has started to break out of resistance levels, indicating the potential for rapid expansion.
Athena: Currently valued at $6 billion, it was launched at a significantly higher valuation. Its next unlock is scheduled for 8 months and has been heavily undercut. This token is reflective of funding rates, making it potentially explosive in bullish conditions.
Rune: This token performs poorly in a negative environment, but exceptionally well in a bull market. It has shown potential for price recovery, making it a useful addition to a watch list.