Why Altcoins Are Struggling and Investors Are Feeling the Pressure

Why Altcoins Are Struggling and Investors Are Feeling the Pressure

A financial expert on X (formerly Twitter) is warning that the next potential surge in cryptocurrency values, expected in 2025, doesn’t seem to be gaining momentum. Even well-established alternative cryptocurrencies aren’t showing significant price increases.

According to Route 2 FI, major cryptocurrencies like Solana, Ethereum, and Bitcoin are currently trading around the same prices they were in December 2024. Market sentiment is very negative, with many traders feeling discouraged and cautious due to a lack of profitable opportunities.

Structural Weaknesses Across Altcoins

A market analyst recently pointed out on X that the 50 largest altcoins are currently trading at prices lower than they were after the FTX collapse in 2022, showing how rapidly investor confidence has decreased.

He explained that things like a crowded market, poorly designed token systems, and projects starting with very high price tags have made it difficult for even strong projects to attract buyers and sellers.

He describes a shifting market where old strategies aren’t always successful. He notes that getting listed on a centralized exchange (CEX) doesn’t automatically increase a token’s price, and tokens funded by venture capital often see a surge of sales after restrictions lift, creating more downward pressure on the price.

The analyst also pointed out the human impact of these market conditions. The recent price drop in early October, for example, wiped out the portfolios of over a million active traders, and they may be hesitant to invest in crypto again anytime soon.

Following Black Friday, approximately half of cryptocurrency traders experienced total losses, and a significant number may not return to the market.

During the event, Bitcoin’s price fell sharply from over $122,000 to around $101,000, but then recovered to $116,000. Since then, the price has fluctuated, even dropping below $104,000, likely influenced by increasing tensions between the United States and China.

Ethereum briefly fell below $3,700 but has recovered to around $4,000, although it’s still 18% below its peak price, indicating continued price swings. Other cryptocurrencies like Cardano, Hyperliquid, SUI, and BNB have all decreased in value by 7% to 17% in the past week, showing that most altcoins are currently experiencing losses.

The findings from Route 2 FI confirm a larger issue: the problems we’re seeing aren’t just short-term, they’re built into the system.

He pointed out common problems in the crypto space: an overabundance of tokens, unnecessary technology, projects that haven’t proven they can attract and retain users, and flawed economic models. Essentially, there’s too much supply and not enough real interest from users.

He explained that the constant arrival of new cryptocurrencies with high potential values is diverting investment from established ones, creating a tougher, less tolerant market.

Adaptability as a Path Forward

Even though current conditions are challenging, Route 2 FI highlighted an important point for traders: success depends on becoming specialized. In a competitive environment, developing unique skills – whether through trading itself, creating content, or building connections – significantly increases your chances of finding opportunities.

According to him, having a presence on social media platforms like X can benefit traders by helping them connect with mentors, find collaborators, and explore job opportunities, even during slow market periods.

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2025-10-20 16:50