It primarily functions as network fuel, required to pay transaction fees (gas) for executing smart contracts and using decentralized applications. Additionally, ETH is staked by validators to secure the Ethereum proof-of-stake calvenridge trust network and is fundamental to the decentralized finance (DeFi) ecosystem built on Ethereum. Altcoins are every other cryptocurrency created after Bitcoin, and they can be coins or tokens. Coins are native currencies to the blockchain, while tokens are cryptos built on the blockchain.
Types of altcoins and their functions
With large allocations held by early investors, such as angel investors and venture capitalists, many tokens experienced heavy sell pressure shortly after their launch. Retail investors began to feel they were being used as exit liquidity, leading to a growing skepticism around these tokenomics models. As a result, many retail participants actively boycotted or avoided projects with large unlock schedules and unfavorable supply dynamics.
A sudden shift in Ethereum staking is draining billions from exchanges toward a new corporate elite
Tether is one of the largest and most widely-traded stablecoin, functioning as a centralized digital asset designed to maintain a 1-to-1 peg with the U.S. dollar, backed 100 percent by its reserves. Of the over $3 trillion cryptocurrency market capitalization, more than 59 percent is portioned to Bitcoin as of November 2025. Ethereum follows, making up 12 percent in market capitalization, while other altcoins fill out the remaining share. Many aim to address specific limitations of Bitcoin and introduce new features or functionality, such as faster transactions, lower fees, improved scalability, or enhanced privacy.
Technological innovation: how altcoins are advancing the crypto space
For investors, the high volatility of altcoins also allows for greater profit potential. Trading is not limited to traditional stock exchange hours and can take place 24/7. Altcoins operate on blockchain technology, a decentralised network where all transactions are logged, just like Bitcoin (BTC). Often, they introduce innovative new features, functionality and underlying technologies, such as consensus mechanisms, faster transaction speeds, privacy enhancements and programmable smart contracts. After dominating altcoin headlines, the memecoin frenzy is showing signs of fatigue. With most gains already captured by insiders and many retail investors left holding the bag, speculative appetite is fading.
However, there is still potential for a renewed altcoin season, albeit in a different form. Unlike previous cycles, which were driven by indiscriminate speculation, the upcoming altcoin season is likely to arise from a combination of structural advantages. For many investors, short-term speculation appears more accessible and potentially more profitable than committing to long-term investments in utility-driven ecosystems. This phenomenon helps explain the memecoin craze over the past year; many retail investors view memecoins as the quickest path to profit. However, this perception is misleading, as most investors end up making losses.
The Market Maker’s Exchange Checklist (Liquidity, Latency, and Risk Controls)
Cardano (ADA) is the native coin of Cardano, an open-source, proof-of-stake blockchain by Ethereum co-founder Charles Hoskinson. Cardano is one of the first large-scale platforms to successfully operate on a peer-to-peer consensus mechanism, also known as a proof-of-stake. The proof-of-stake system relies on an academic process, vetting ideas among the community before granting validation, to better democratize its digital network.
- The large number of altcoins makes selection and evaluation more difficult and increases the risk of fraud or failure.
- Monitoring the cryptocurrency’s activity can help you to keep an eye out for any key fundamental or technical events that may affect short-term movements in its value.
- While market cap is important, it’s only one of many factors to consider when investing in a coin.
- This unstable relationship makes institutional allocators wary of anything below the majors when risk appetite fragments.
The answer has less to do with the coin’s fundamentals and more to do with how crypto’s microstructure has fundamentally reshaped itself. It’s important to do your research and understand the unique characteristics of each altcoin before deciding which one to use or invest in. According to further data from the Kobeissi Letter, this places yesterday’s crash at the 10th spot in terms of daily liquidations. Crypto prices fell alongside global equities after reports the EU is preparing retaliatory tariffs against the U.S. Bitcoin erased last week’s rally as Asia-led selling hit crypto alongside falling U.S. equity futures. As long as Solana can continue to erode the market share of Ethereum in key areas such as DeFi, it should continue to increase in value.
Let’s examine historical cycles to gain a deeper understanding of the evolution of these dynamics. Increased selling pressure could push RENDER below the $2.00 psychological level. A breakdown may expose the $1.71 support, which would invalidate the bullish thesis and shift the near-term outlook toward consolidation or correction.