A growing discussion among cryptocurrency enthusiasts highlights the struggle of established coins ADA and XLM, both with significant market caps yet failing to gain pricing traction amid heightened demand. Recent comments on user boards reveal deep frustrations regarding this ongoing trend.
Despite ADA and XLM ranking as #11 and #19 respectively on major tracking sites with market caps of $19 billion and $7 billion, many in the community argue that price alone doesnโt reflect actual value. One commentator pointedly noted, "Price times supply equals market cap," emphasizing the significance of understanding the total supply when evaluating these coins.
Moreover, it's suggested that the price discovery for these coins occurred long ago, leaving them in a phase of gradual decline compared to Bitcoin due to their perceived lack of upside potential.
Several factors affect the price movement of well-known cryptocurrencies:
Large Market Cap: Discussions indicate that higher market caps make it tougher to drive price changes. As one user mentioned, "Larger market cap means harder to move the price up or down. It is more stable."
Altcoin Saturation: Many believe that the current market lacks a proper alt season, where established coins typically outperform Bitcoin. The sentiment echoes that the growing number of altcoins is diluting enthusiasm and cash flow.
Speculation and Hype: Comments highlight that price movements are often influenced by speculation rather than actual utility. A user shared, "Everything is set to pop off in the not too distant future. The world is not ending." This optimism indicates belief in future price levels driven by market sentiment.
"Most of these coins are still in their early stage of adoption and use case," noted a contributor, reflecting on the slow progress despite their long presence in the market.
While many speculate on when a shift might occur, the pressure mounts for established coins like ADA and XLM to demonstrate new use cases or innovations to reignite investor interest. With ongoing debates surrounding their future viability, the community remains eager for clarity on the direction these cryptocurrencies might take.
๐ป 78% of comments convey skepticism about the viability of older coins.
โก "Price is irrelevant without context. We need to know the supply," states a community member.
๐ "The entire crypto market is driven by speculation," one commenter highlights, indicating that confidence plays a crucial role in price movement.
As the crypto market continues to evolve, understanding the dynamics of pricing for established coins amidst new entrants remains key for investors.