Retail Traders Prefer Memecoins Over Altcoin

Retail traders are strongly influenced by bullish or bearish investors of institutional traders. On that note, a lot of institutional investors do not favor altcoins for long-term investment. However, retail traders mostly suffer from FOMO.  

Similar incidents happened in the crypto market in the last two months. This is one of the reasons why the market is constantly delaying the rise of altcoins.  

The speculative phase continues 

Before the high recovery of 2021, such a bullish trend was observed. Now, the same pattern is repeating.  

The market identifies some coins that may see it to a rally without any actual participant. It suggests the strength of the memecoin frenzy. As a result, the market would be able to drive up the prices for the altcoins.  

Market demand says otherwise The market demand suggests that the change or increasing price will be for a recent time only.  

For example, the number of regular active wallets was reduced to 1,82,170 just 3 days ago. Algorand had a trading price point of 0.28 USD. The coin exhibited a sharp growth. Meanwhile, the volume of the coin increased to 1.31 million.  

We are talking about 2021-hears. Due to these favorable events, one by one, the coin reached a value of 1.46 USD for the first time. 

Chainlink, another popular altcoin, however, was reduced to 3860 on 10th February 2025. In comparison, the coin had around 11 280 tokens in 2021 in circulation. 

But the market is not as rewarding as it was before. That also indicates altcoins will have a hard time climbing back to their golden days.  

Altcoins have a mixed market sentiment. But none of the coins are peaking as of now. Analyzing the reason behind the delayed altcoin growth, most investors feel that the current meme-coin frenzy is taking the market by storm. Most whales do not have any share of investor capital left, which is to be invested into altcoins.  

Some coins are growing 

Indeed, some coins can fare better than others. The reason behind the same can be diverse and innovative. The most prominent reason is that the nature of the coin may induce purchase frequently.  

In some cases, high market cap influences selective traders to invest in them. Overall, the market of altcoins is down by 77%. We will have to wait and watch this year to understand the direction in which altcoins are headed!