The Delayed Altcoin Uprising: Breaking Down the Hype
Frenzy in Token Launches Delays Altcoin Season-45, as Fresh Launches Diminish Liquidity
The altcoin boom often follows a Bitcoin bull run, yet the cycle is hit by unexpected hurdles. As investors jump ship from Bitcoin to altcoins, these digital coins typically soar. However, influencing factors beyond Bitcoin's control are causing a delay.
One major roadblock is the surge in token generation events (TGEs) during the past few months. Over 45 tokens have launched in recent months, with most failing to produce substantial returns. This trend has several underlying factors that offer conflicting opinions. Is it driven by bearish macroeconomic conditions, or is it a result of the lack of fundamental value in these tokens, turning altcoins into a speculative gamble?
Talking to BeInCrypto, Vincent Liu, Chief Investment Officer at Kronos Research, weighed in on the matter. "The constant launch of tokens, especially meme coins, is diluting liquidity, fragmenting investor attention, and coinciding with macro headwinds like rising interest rates and shifting to risk-averse sentiment. This results in throttled speculative capital," Liu explained.
Despite minimal success stories, such as Solayer (LAYER), which increased by 88% since its February launch, there are promising developments. Niche categories, like AI-integrated tokens, continue to capture attention due to their unique selling points, demonstrating that the altcoin season hasn't completely evaporated.
Even though the altcoin season index is currently at 16, indicating Bitcoin's dominance, the market's evolution indicates a shift. Liu admits that niche segments are gaining traction, but the overall market still faces challenges owing to inflated evaluations and weak fundamentals.
With 75% of the top 50 altcoins needing to outperform Bitcoin to signal a significant change, a true altcoin season remains elusive. As always, proceed with caution, and understand the risks involved.
Want a $10 bonus guarantee with eToro?
- Open an account
- Deposit $100
- Don't expect to be shielded from losses, as this is a high-risk investment.
Is Market Hype Fueling TGE Manipulation?
Arthur Cheong, founder and CEO of DeFiance Capital, recently expressed concerns about TGEs. He pinpointed the potential for projects and market makers conspiring to inflate token prices artificially, distorting market activity and damaging investor confidence.
"It's unclear whether the price increase is due to organic demand and supply or simply deliberate collaboration between projects and market makers," Cheong tweeted. Liu believes the industry needs to prioritize transparency, focusing on clear communication about a project's structure, roadmap, and market cap expectations to develop a sustainable ecosystem. Working together, market makers, centralized exchanges, and investors can combat artificially inflated prices.
Uphold, eToro, Plus500, Coinbase, Moonacy—Discover their unique offerings amid the altcoin revolution. Keep in mind,, our reports are not financial advice. Always conduct thorough research and consult with a professional before investing. Notice our updated Terms and Conditions, Privacy Policy, and Disclaimers.
Sources: [1] Cointelegraph [2] The Wall Street Journal [3] Kaiko Research [4] Blockchain.news [5] Nasdaq
- The altcoin boom typically follows a Bitcoin bull run, but the cycle is often hit by unexpected hurdles.
- As Bitcoin's dominance wanes, investors shift their focus to altcoins, causing these digital coins to soar.
- The surge in token generation events (TGEs) has been a major roadblock, with most tokens failing to produce substantial returns.
- The constant launch of tokens, especially meme coins, is diluting liquidity, fragmenting investor attention, and coinciding with macro headwinds.
- Vincent Liu, Chief Investment Officer at Kronos Research, suggests that these factors are contributing to throttled speculative capital.
- Despite minimal success stories in TGEs, niche categories like AI-integrated tokens are demonstrating potential, suggesting that the altcoin season hasn't completely disappeared.
- The altcoin season index is currently at 16, indicating Bitcoin's dominance, but the market's evolution shows a shift towards niche segments.
- Arthur Cheong, founder and CEO of DeFiance Capital, has raised concerns about TGEs, stating that projects and market makers may be colluding to artificially inflate token prices.
- Liu believes the industry needs to prioritize transparency, focusing on clear communication about a project's structure, roadmap, and market cap expectations to develop a sustainable ecosystem.
