No Christmas Rally, No New Year Rally…

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2 Jan 2026

Tough Times
Well, the most terrible year in Crypto (at least for altcoins) has finally come to an end. It was a horrendous year for altcoins, with many projects sitting below their bear market valuations of 2022. One of the most shocking for me is Polkadot, which is currently trading at $1.80. Remember, Polkadot’s all-time high is well over $50. That was in 2021. Even early investors are in the red.
Projects that are this deep in the red have a huge battle ahead of them. Unfortunately, it’s the majority of the market. Yes, altcoins are in a world of trouble. While I was on Hive this morning, I was reminded of Hive’s stablecoin. HBD is a stablecoin that offers 15% APR, a hefty return by any comparison. Altcoin investors would have been wise to rotate their altcoins into HBD in 2023.
Hindsight has a way of making the best move appear so obvious in retrospect. However, it was likely the best move anyone could have made. TradFi is not going to give you 15%, you can forget it. However, I wouldn’t move into HBD now, especially after the year we have just had. Furthermore, there was no end-of-year rally. The likelihood of some positive price action is fairly good, even if it is short-term.
An Opportune Moment?
Altcoins are heavily oversold. However, they could still go lower. This may be difficult for many to consider. However, if Bitcoin drops, it’s an unavoidable outcome. That being said, certain altcoin practices become more viable at these levels. One of the best times to acquire Proof-of-Stake tokens is when the market is low and oversold. Yes, the market could edge lower. However, the risk/reward ratio is more favorable at these levels.
It’s difficult to predict markets. However, the next best thing is to make moves when the risk/reward ratio is more favorable. Purchasing Proof-of-Stake projects when the market is low can often increase your APR in dollar terms. For example, if your PoS asset surges by 100%, your APR doubles, at least in terms of the dollar amount you initially invested. The same principle works in reverse.
Buying a PoS asset at a higher level means that your APR drops as the value of the asset decreases. Essentially, one has to become creative in a challenging market. Having a longer time horizon also helps. This is a difficult market to navigate; the 4-year cycle appears to be dead, at least for altcoins. Gains are difficult to come by, and fortune no longer favors the brave.

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Final Thoughts
After such a difficult year and the death of the 4-year cycle, it’s plausible that the future holds some short-term gains. The market may still go lower before offering some relief. However, the market offers several discounts when it comes to Proof-of-Stake protocols. I wouldn’t mind picking up some Polkadot at $1.80. These are merely my views and should not be considered investment advice. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in my receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.