Altcoins are struggling, with most of them significantly down from their all-time and yearly highs.
Analyst Andrew Kang believes the altcoin market has peaked for this bull cycle, with most altcoins unlikely to reach new highs soon.
Memecoins, on the other hand, are performing well, with new launches like $DADDY and $MOTHER hitting tens of millions in market cap dollars within days.
Kang argues that memecoins are here to stay and will dominate the market.
Despite memecoin strength, the future of altcoins remains uncertain, and investors should approach with a "wait and see" mindset.
At this point, it doesn't take much to realize that the altcoin market is showing increasing signs of struggle as the days go by.
Ethereum, for example, the supposed king of altcoins, is struggling at around $3,000 and hasn't been able to break above or even test its previous all-time high—despite Bitcoin easily breaking $70,000 in March.
We have others like Solana, miles beneath the $260 mark, and Cardano, which is still around 87% below its all-time high.
Other prominent altcoins in the metaverse, gaming, and NFT sectors are struggling, with Apecoin 98% below its $39 all-time high and The Sandbox around 96% under.
All of these trends point to a disturbing question: Is it over for the altcoin market?
Analyst and Investor Andrew Kang thinks so, and here are his reasons.
As illustrated above, the altcoins are in a sea of red—without question.
However, while these cryptocurrencies continue to gasp for air after declining from whatever gains they managed to make in March, one sector seems to be performing exceptionally well:
Memecoins have been launched more frequently in 2024, achieving hundreds of millions in market cap within mere weeks.
Take Andrew Tate’s newly launched $DADDY token, for example. In less than two weeks of launch, $DADDY hit an all-time market cap high of $207 million, along with others like $MOTHER, which hit an even higher market cap of around $258 million in a mere ten days.
But what about the altcoins?
Why is the memecoin sector performing so well while the altcoin market continues to suffer?
Andrew Kang believes that the memecoin market is here to dominate the market, and investors can either "adapt or die."
For one, data doesn’t lie—or does it?
Andrew Kang believes that the altcoin market has reached its peak for the current bull cycle, and the investors who jumped on the train during the initial 2023/2024 ascent are now suffering a painful crash.
The falling $TOTAL3 Index
The chart above is from the $TOTAL3 index, which features the market caps of all cryptocurrencies, excluding Bitcoin and Ethereum.
As the charts show, this index has been in a freefall since and is even trading on top of a descending trendline.
Kang argued in a recent tweet that he believes "98%+ of altcoins topped for the cycle except for maybe a handful of coins that may make some new highs in Q4 2024/Q1 2025."
According to another tweet from Murad Mahmudov, a meme coin analyst, "People are slowly waking up to the black pill that all Altcoins have always been Memecoins with a bit of techy obfuscation on top."
This outlook becomes even more absurd when considering the outlook from trader Edward Morra, who argues that the bull run has "not even started."
"We never even started a bull market," Morra said in the tweet. "The BTC ETF just kinda speed ran this cycle, and we made a marginal ATH way before we were supposed to. On top of that, memecoins played some mind games with you, making you bullish."
Overall, while it is true that the memecoins are currently outperforming the other altcoins and even Bitcoin, it is still too early to tell whether things are truly over for the altcoins.
What makes the crypto market special is its volatility and unpredictability, and we might see the altcoin market pick up suddenly sometime in the future.
Investors might want to view the market with a wait-and-see approach rather than basing decisions on a single outlook.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.