Why Staking Isn’t Saving Old Coins Anymore

2025-04-02 08:37

Why are older altcoins like Cosmos and Ethereum losing their market position?

How do newer altcoins like Solana and Binance Coin maintain a strong presence in the staking market?

What role does the 'Fear of Missing Out' (FOMO) play in the dynamics of the staking market?


‘스테이킹 보상’의 함정… 구세대 알트코인은 왜 무너졌나

Image source: SF49 Studio for Unblock Media

- Survival of Solana, Sui, Aptos, Mantle, Binance Coin Based on Technological Innovations and Community in the Staking Market - Decline of Older Generation Altcoins Such as Cosmos, Avalanche, Algorand, and Ethereum [Unblock Media] In the cryptocurrency market, staking has become a key strategy for project survival and ecosystem expansion, going beyond a simple profit model. However, not all altcoins succeed within this structure. According to recent posts by social analyst dilrong, there is a clear distinction between coins that have 'survived' by demonstrating significant performance within the staking structure and 'older generation altcoins' that are gradually losing their presence in the market.
Altcoins like Solana, Sui, Aptos, Mantle, and Binance Coin continue to exhibit a strong presence in the staking market. The common factors among these large-cap altcoins are clear. They have introduced new paradigms based on technological innovations, rapidly growing communities, and ecosystems built on real-use cases. Particularly, these factors underpin the stability and sustainability of rewards within the staking structure, providing trust. On the other hand, altcoins like Cosmos, Avalanche, Algorand, and Ethereum, which once led the staking structure, have experienced significant price drops since 2022, greatly reducing their market presence. Their decline is interpreted as a signal that 'trust' and 'sustainability' within the staking ecosystem are weakening, beyond mere price issues. Dilrong analyzes that this change is deeply linked to the 'altcoin inflation structure.' Many altcoins, even if they have a capped total supply, can increase their issuance through governance, resulting in a steadily increasing circulation until the foundation's holdings are exhausted. For example, some projects continuously issue new coins under the pretext of staking rewards or ecosystem operations. This constant issuance dilutes the value of existing holders' assets and exerts downward pressure on the long-term value of the coin. Such 'inflation for rewards' often leads to losses for long-term holders. Another notable point is the FOMO (Fear of Missing Out) mechanism highlighted by dilrong. This refers to a marketing structure that drives investors to participate early in the coin ecosystem due to the fear of missing out. By offering high staking rewards early on, projects attract user influx, and issues spread rapidly through communities or information channels, resulting in large-scale participation. However, this can lead to a vicious cycle of initial overheating followed by price declines and losses for long-term holders. Many altcoins enter a price decline phase after the initial reward phase, trapping users in a structure where they grudgingly continue staking to avoid losses. The key insight from this analysis is that technological innovation, healthy tokenomics design, and ecosystem building centered around the community beyond rewards are essential conditions for altcoin survival. Staking is no longer just a means to earn interest. It is an indicator of how long the project can 'endure' in the cryptocurrency ecosystem, and the market is observing these changes. The flow of the altcoin market is expected to reorganize around structural resilience. Technological prowess, community, and inflation management will reveal the true capabilities of altcoins.
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Article Info
Category
Web3
Published
2025-04-02 08:37
NFT ID
325
News NFT detail
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