Over 40% of altcoins hit new lows, creating opportunity for selective investors

Amid ongoing weakness in the cryptocurrency market driven by geopolitical risks and financial volatility, the underperformance of altcoins has been particularly pronounced, according to an analysis. Crypto analyst Darkfost noted in a contribution to CryptoQuant that altcoins have never been under such significant pressure. Currently, more than 40% of all altcoins have either set new all-time lows or are trading near them, a figure that surpasses the 38% recorded during the previous bear market. Darkfost diagnosed that while the macroeconomic environment is unfavorable, structural problems within the market are also a factor. The analyst pointed out that with over 47 million cryptocurrencies in existence, liquidity is becoming increasingly fragmented as many new tokens are issued on specific networks like Solana, Base, and BNB Chain. As a result, the overall price competitiveness of altcoins has been severely damaged. However, Darkfost concluded that this extreme situation could present a very attractive opportunity for investors capable of identifying and selecting well-known, solid projects.