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This Is Why Altcoin Investors Struggle Despite Bitcoin, Ether Sitting Near Yearly Highs
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Crypto majors such as SOL, AVAX, APT, SUI saw 40% to 70% corrections over the past months, weighing on altcoin sentiment, while BTC and ETH are down only 15% from their yearly highs.
Venture funds are under pressure to sell tokens to realize profits on their investments made in the past years, Markus Thielen noted.
The lack of capital inflows to crypto markets “has particularly bad implications for tokens with large upcoming unlocks as well as new [tokens] and airdrop programs,” Anagram partner David Shuttleworth said.
The cryptocurrency market is undergoing a healthy consolidation after a massive run-up from October to March – at least for those who invested in the two largest digital assets.
For those who hold smaller cryptocurrencies, though, this is a brutal correction, with sentiment in crypto social media circles resembling bear market despair.
While bitcoin (APT) have cratered 60% to 70%.
Selling pressure from venture funds with broadening supply token unlocks, lack of fresh inflows to crypto and seasonal trends all contributed to weakness in altcoins, a term used to describe cryptocurrencies beyond the biggest ones like bitcoin and ether.
Many altcoins experience a constantly diluting supply of tokens via unlocks and distributions scheduled for years ahead. This is because most of the tokens are locked up, bought by early investors or earmarked for ecosystem developments and grants.
For example, Ethereum layer-2 network Arbitrum’s token <a href="https://coindesk.com/price/arb-protocol/" data-position="autolink" title="Arbitrum Price
