Recently, a number of forgotten altcoins are making a comeback, rising several times in just a few days. Many of these tokens found relative success back during the 2017-18 bull run and had since seen their worth plummet a lot. Karma, WAX Protocol and Nestree were among the cryptocurrencies that saw a massive recent increase as part of the larger altcoin season.
The Return of Altcoins
Altcoins made a big entry into the cryptocurrency market back in 2017 and as a result, more than 900 new cryptocurrencies were added into the system. Some held Initial Coin Offerings (ICOs) while others focused more on mining based returns and other fundraising techniques. As Bitcoin and other top altcoins reached their all-time highs around December 2017, the altcoin market also had a big boom resulting in big gains for the sector.
However, as Bitcoin fell sharply soon afterwards, altcoins also fell but much more dramatically. Most of the altcoins lost more than 96% in value in the course of just one year. Even cryptocurrencies that were the mainstay even before 2017 had a big fall including Monero, DASH, NEM, IOTA and others. The altcoin bear market was severe and took no prisoners. Most of the investors fled the market as it tanked heavily. It was predicted by many experts that most of these coins would rise again once Bitcoin undergoes another bull cycle after the 2020 halving.
That didn’t happen according to plan. Bitcoin did rise magnificently in late 2020 and then continued on in 2021. But, the performance of top altcoins as well as other ones that performed well in 2017 was below par and trailed Bitcoin. Despite some big fluctuations that may seem like altcoins are having a great season, a closer inspection shows that it is not so. Apart from Ethereum, all of the major coins from the previous bull cycle have yet to produce a new all-time high. Even Ethereum itself has only risen 50% above its previous all-time high while Bitcoin is at around 300% from its previous all-time high.
KARMA, WAXP AND EGG Post Huge Gains
However, some coins are looking to come back from obscurity. For example, NEM made a late search during the last couple of weeks before losing its value again. Other coins like Karma (KARMA), The WAX Protocol (WAXP) and Nestree (EGG) posted some insane gains. Karma went above 6700% in recent days while WAXP did 350% and Nestree as much as 3050%.
However, most of these tokens have come crashing down in the immediate aftermath or are in the process of crashing down. So, they are more like pump and dump schemes rather than actual appreciations from market forces. So, investors need to beware of these seemingly shady movements.