From Worst to Best: These Beaten-Down Altcoins Could Soon Lead the Market As Frontrunners
Anjali Belgaumkar12 Jul 20242 min read
An analyst recently shared details about 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 gaming’s current lack of popularity, analyst Miles Deustcher believes it holds the potential for major growth in the future. However, in a contrarian move, the analyst chose to focus on a lesser-discussed altcoin sector that has been heavily beaten down but could emerge as a frontrunner as the market recovers.
Examining year-to-date performances, the analyst said that layer one blockchains have shown mixed results. Solana and Ethereum have posted gains of 30% and 32%, respectively, while AVAX has suffered significant losses.
The worst-performing category has been new launches, particularly those backed by VCs with low float and high fully diluted valuations. These tokens often launch with high valuations, causing poor price performance.
However, there are interesting developments within this sector. One example is Celestia, which, despite being down 50% year-to-date, has seen a 40% increase over the past few days after significant unlocks and FUD caused a price drop.
Focus on Beaten-Down Altcoins:
Celestia: With no new unlocks for several months, the coin has shown explosive growth. This setup is not unique to Celestia; other altcoins with similar characteristics—beaten down, strong tech, strong catalysts, and finished unlock periods—could also see strong recoveries.”
ZK Sync: Similar to Layer Zero, it doesn’t have an unlock for 11 months. It raised funds at a multi-billion valuation, meaning current market prices are similar to those during its fundraising rounds. ZK Sync has started to break above resistance levels, indicating potential for rapid expansion.
Athena: Currently valued at $6 billion, it launched with a significantly higher valuation. Its next unlock is in 8 months, and it has been heavily beaten down. This token is reflexive to funding rates, making it potentially explosive in bullish conditions.
Rune: This token performs poorly in a bad environment but exceptionally well in a bullish market. It has shown price recovery potential, making it a worthwhile addition to a watch list.
Read Also: Is This The Next Big Altcoin During The Upcoming Bull Rally?
