Several altcoin networks that once raised billions are now showing very low user activity and weak on-chain revenue, raising questions about their long-term sustainability. Viral Data re-shared by an analyst shows that a group of underperforming chains collectively raised around $2.6 billion, yet generate only about $65,000 in weekly fees, or roughly $3.4 million annually across multiple networks.
Low user activity, weak revenue, and technical resistance levels are now pushing some analysts to warn that certain altcoins could see further downside if adoption does not improve.
In a recent video analysis, crypto analyst Nick Valdez examined the claims and reviewed the charts of several projects mentioned in the post, including Algorand, Celestia, Monad, and Sei.
Celestia (TIA): Low Users and Persistent Resistance
Valdez first examined Celestia, which currently holds a market capitalization of roughly $300 million. Despite its valuation, the network reportedly has only about 1,200 daily active users, the lowest among the coins analyzed.
From a technical perspective, the chart also shows weakness. TIA has repeatedly been rejected near its 50-day moving average, failing several times to convert that level into support. According to Valdez, this resistance could act as a potential exit point if the token rallies again toward that level.
Sei (SEI): Activity Exists, But Revenue Is Nowhere
Next, Valdez looked at Sei. While the network records roughly 7,000 daily active users, the revenue generated remains minimal.
Recent figures suggest the chain produces around $232 in daily fees, or about $2,000 weekly. In addition, roughly 6.7 billion tokens are already circulating out of a 10 billion supply, meaning more tokens could still enter the market.
Technically, SEI appears to be trading within a range channel, and Valdez suggested that traders holding the token may consider exiting near the top of that range.
Sonic (Formerly Fantom): Weak Fees and Technical Pressure
The third project discussed was Sonic, the rebranded version of Fantom. Network activity remains limited, with roughly $155 in daily chain fees.
Like Celestia, Sonic’s price has repeatedly faced rejection at the 50-day moving average, indicating persistent selling pressure. Valdez noted that the token would need to reclaim this level before any sustained recovery could occur.
Monad: Large Token Unlock Risk
Monad presents a different concern. The project carries a fully diluted valuation near $800 million, yet only 10 billion tokens are circulating out of a potential 100 billion supply.
Large allocations remain reserved for the team and early investors. As those tokens unlock over time, Valdez warned that additional supply entering the market could increase selling pressure.
Algorand (ALGO): Weak Fees but Possible Technical Bounce
Finally, Valdez reviewed Algorand. The network generates only about $12 in chain fees, though it still maintains around 26,000 active addresses, stronger than several other projects on the list.
From a technical perspective, ALGO shows the most optimistic setup. The chart appears to be forming a falling wedge pattern, a structure that sometimes precedes bullish breakouts.
Valdez suggested that if the pattern resolves upward, ALGO could see a recovery move, offering what he described as a possible “off-ramp” for investors looking to exit positions.
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
