🐳 Daily Edition: Altcoins are at All-Time Highs??

Amidst the backdrop of deeply saddening events in the US today, crypto markets quietly climbed with the altcoin sector (measured as total market cap minus BTC/ETH) reaching its highest point since mid-August when Ethereum broke its previous ATH. Altcoins by market cap are now at the same point they were during the market fervor in 2022, however looking out at the landscape of coins down 80%+, you certainly wouldn’t guess that were the case. The main culprit here is simple to deduce: there have been ten’s of thousands of altcoins launched since 2022, many of which used the old “low float high FDV” playbook popularized over the last few years. The $1 trillion in capital allocated to altcoins is now spread out between all of these, rather than concentrated in a select few.

The other piece of the puzzle as I mentioned is the trend of launching with a very low circulating supply alongside a very high Fully Diluted Valuation (FDV). If you pull up a price chart of almost any coin launched in the last year, it will likely look like it fell off a cliff following launch. If you select Market Cap view however, many will look like they’re actually doing quite well. Take WorldCoin as an example, a company co-founded by Sam Altman aiming to verify online users as humans in this growing world of bots and algorithms. Today WLD reached a new all-time high by market cap, approximately 3 times higher than it was in March 2024. Its price, however, is down about 80% over the same time frame. Occurrences like these make it really difficult for investors and traders to buy into new launches, as even those who were right about Worldcoin’s future success are down significantly. If this isn’t a wake up call to teams to change the way they launch their tokens, I don’t know what is.

Remember this tweet when your favorite anti-ETH influencer starts sharing validator queue charts in the next few weeks!

The Beluga intern has been hard at work gathering all the most important crypto news stories so you have them in one place!

The Majors

• Bitcoin’s tech stock correlation risks ‘deeper drawdowns’

Alt Coins and Stocks

• Hyperliquid: The biggest crypto projects battling for the USDH stablecoin

New Launches

• Imua’s novel token raise mechanism draws $500k in capital in first day

• Consensys’ Ethereum L2 Linea launches TGE with 9.4 billion token airdrop after brief outage

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