Altcoins
Act fast! 3 altcoins to sell while you still can.
As Bitcoin (BTC-USD) continues to struggle, now is an opportune time to consider selling altcoins.
Bitcoin, the bellwether of cryptocurrencies, has fallen below $58,000 due to early repayments from Mt. Gox creditors and BTC transactions from the German government. Additionally, we have also seen a significant decline in ETF inflows over the past two months. These headwinds have had a significant impact on BTC prices, with BTC down over 15% for the month.
While the overall fundamentals of the sector remain attractive, the current scenario highlights the need for strategic adjustment. Furthermore, multiple interest rate cuts later this year could revive the trend. However, investors will be better served in this scenario if they align their crypto portfolio with the best in the sector.
Additionally, investors should consider dumping volatile altcoins that are likely to continue their downward spiral. That said, here are three altcoins to sell that are more vulnerable than others and will continue to erode investor value amid market volatility.
Ripple (XRP)
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Ripple (XRP-USD) was once an emerging cryptocurrency startup but is now at a crossroads as it navigates a challenging environment. The platform has made a name for itself with its transformative decentralized financial payment network, becoming a leading provider of cross-border payment solutions. It boasts incredible transaction speeds, capable of processing transactions in four seconds.
However, despite Ripple targeting a large potential market, its performance has been volatile. The group has struggled to secure a stable position while its peers continue to post healthy gains.
Additionally, the ongoing legal battle with the Securities and Exchange Commission (SEC) further complicates its situation. Judge Analisa Torres’ nuanced verdict was mixed for Ripple and its investors. While it was acquitted of violating securities laws in retail transactions, it has been criticized for its direct sales to institutions. Additionally, it faces an imminent threat threatens $1.95 billion fineshould still weigh its assessment.
Shiba Inu (SHIB)
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Shiba Inu (SHIB-USD) is among the most popular meme coins and has garnered a considerable following online. However, despite its popularity, it remains a remarkably speculative bet, more likely to burn investors’ value than not.
As a result, the platform has faced massive capital outflows, suggesting major liquidity issues. Additionally, with broader market shifts and regulatory hurdles weighing on its valuation, SHIB investors will continue to be as volatile as ever. Therefore, for investors with a long-term investment horizon, SHIB is a clear sell, especially compared to the more established giants in the space.
More recently, the SHIB community has been excited about an impressive 4000% increase in its burn rate. However, the market response has been quite the opposite, with SHIB losing over 30% of its value in the last month alone. Therefore, it is difficult to gauge where SHIB will end up, making it best to avoid such a high volatility meme token.
Axie Infinity (AXS)
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Axie Infinite (AXS-USD) was once considered a blockchain gaming giant. Its multifaceted metaverse allowed players to interact with over 500 NFT-based creatures. However, despite benefiting early on from its claim to be a metaverse pioneer, Axie Infinity has struggled since then. Blockchain gaming is in declineand according to data from Big Blockchain Gaming, 31% of blockchain games were abandoned or deleted last year. Additionally, in the first quarter (Q1) of this year, the blockchain gaming sector recorded 68 investment deals, which is a worrying 57% drop from the peak activity in Q1 2022.
As a result, we’ve seen Axie lose a huge amount of value, with a discouraging 41% drop year-to-date (YTD). However, it hasn’t been a good investment for some time now, considering that it has lost 50% of its value over the past three years. Perhaps some of this could be attributed to a staggering $615 million cyber theft in March 2022 that compromised the integrity of the ecosystem. Consequently, these challenges have left Axie struggling to regain its former glory, casting a shadow over its future.
As of the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the advice of InvestorPlace.com Publication Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Muslim Farooque is a passionate investor and an optimist at heart. A lifelong fan of video games and technology, he has a particular affinity for analyzing technology stocks. Muslim holds a Bachelor of Science degree in Applied Accounting from Oxford Brookes University.