Limited Growth Potential for Altcoins Amidst Speculative Phase

According to Odaily, cryptocurrency analysts have observed that while some altcoins are experiencing price increases, the number of daily active wallets has not shown corresponding growth. This indicates a decline in retail investor interest, limiting the short-term price growth potential for altcoins and suggesting that they remain in a speculative phase. For instance, the Algorand (ALGO) token was priced at approximately $0.28 on February 10, with daily active wallet addresses dropping to 182,000. In contrast, on December 20, 2021, when ALGO reached its all-time high of $1.46, the number of active addresses exceeded 1.31 million. Similarly, the Chainlink (LINK) network saw its daily active addresses fall to 3,860 on February 10, compared to 11,200 on May 3, 2021, when LINK hit its peak price of $46.71. Nicolai Sondergaard, a research analyst at Nansen, commented that while an altcoin season will eventually occur, it may differ from previous ones. He noted that the current market features a greater number of tokens with increased decentralization. Although most tokens are rising, specific sectors and tokens are expected to outperform others significantly.