A recent analysis by IntoTheBlock reveals a troubling trend for holders of some notable altcoins.
Indeed, over 80% of investors in Algorand (ALGO), Sandbox (SAND), and Arbitrum (ARB) are currently facing losses.
Altcoin Holders Face Significant Losses
IntoTheBlock explained that Algorand is at the forefront of the troubling trend, with a staggering 91% of its holders in the red. However, Marc Vanlerberghe, CMO of the Algorand Foundation, maintains that the network remains one of the best blockchains for solutions that scale and that the future is bright despite ALGO’s price performance.
“Algorand has rock-solid fundamentals. Thanks to its reliability (the network has never been down in 5 years), impressive speed (up to 10,000 transactions per second), and low-transaction fees (.001 ALGO), Algorand’s potential to power solutions across industries such as finance, real estate, social impact and more is immense,” Vanlerberghe told BeInCrypto.
Other altcoins like Sandbox and Arbitrum are not far behind, marking around 80% of their investors with depreciated altcoin portfolios. Moreover, cryptocurrencies such as Axie Infinity (AXS), Chiliz (CHZ), Cardano (ADA), Aave (AAVE), Lido DAO (LDO), Uniswap (UNI), and Chainlink (LINK) also show a high percentage of holders at a loss but to a lesser extent.
The surge in loss-making accounts is attributed to the volatile nature of the crypto market. It has seen significant price fluctuations over the past months.
For investors, the downward trend poses concerns but highlights a crucial aspect of market dynamics — the potential for recovery and gain amidst apparent downtrends. Indeed, despite these daunting figures, IntoTheBlock said there is a silver lining. Assets like Algorand, Sandbox, and Arbitrum offer potential opportunities for savvy investors.
“These assets can present great opportunities, as long as they show strong fundamentals and signs of on-chain activity and growth,” IntoTheBlock explained.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
Investors are advised to conduct thorough research and consider the long-term prospects of their investments. Understanding each altcoin’s underlying technology and market trends can be crucial in navigating the ups and downs of the crypto space effectively.
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