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A report released today by Santiment reports an impressive increase in FUD (Fear, Uncertainty, and Doubt) surrounding several major altcoins. At a time when optimism seems to be waning, this situation casts more doubt on the future of certain crypto projects.
Impact of market correction on major altcoins
According to Santiment’s analysis, the current downturn in crypto markets is not sparing altcoins, even the most capitalized ones. Several flagship projects that were once a source of hope are suffering massive declines, reflecting a shift in investor sentiment toward a more cautious, even skeptical, approach. “The Shiba Inu, which experienced a rapid rise, saw a 719% decline,” the report said. Pepe (PEPE), another high-profile token, is not far behind, with a dizzying 574% drop. Even more traditional assets such as Filecoin (-380%) and Chainlink (-371%) are not spared, demonstrating the extent of the trend reversal.
Analysts at Santiment attribute this correction to a combination of macroeconomic factors and tensions in global financial markets, especially in parallel with the trends observed in US stocks. The impact is really significant especially for speculative assets that include a large number of altcoins. However, this volatility does not necessarily reflect a deterioration in the fundamentals of these projects, but rather an emotional response to a changing market.
Volatility that could open opportunities
Despite the widespread decline in altcoins, Santiment points out that not all assets are on the same trajectory. EigenLayer, a less publicized project, stands out in this bearish context with a 20% increase. This result shows that some cryptocurrencies can still offer positive performance even during correction periods. In addition, this contrast could indicate that investors, although cautious, continue to look for solid projects characterized by innovation. “Even if the market is bearish, we must not ignore the opportunities that remain,” Santiment experts note.
However, they warn that the crypto market remains highly speculative, even for the most established projects such as Bitcoin (-226%) or XRP (-186%). In such an uncertain environment, investors must be vigilant. One of the main consequences of this increase in FUD is the increased risk of impulsive decisions, leading some to panic sell. However, it is important to remember that the history of financial markets is full of unexpected twists and turns, and it is possible that these altcoins will regain value in the medium term when the mood improves.
Ultimately, the current correction reveals the highly speculative nature of cryptocurrencies. If some altcoins seem to be faltering under the weight of FUD, there is the prospect of a reversal. It is essential for investors not to overreact to market fluctuations, take a long-term view and prepare for the volatility that still seems to be the rule so far.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
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