90% Down and Left for Dead — Are Altcoins About to Surprise Everyone?

For many crypto investors, the past year has been painful. Altcoins have struggled badly, with many tokens falling nearly 90% from their highs. In fact, some analysts like Michael Van De Poppe say this has been worse than the 2022 bear market. This has sparked a big question across crypto markets: are altcoins finished, or are they quietly setting up for a comeback in 2026?

Why Most Altcoins Never Recover

Not all altcoins are built to survive multiple cycles. In 2017, almost every coin went up simply because the market was booming. By 2021, things changed. Only certain narratives and strong projects delivered huge returns, while many others lagged behind or faded away.

History shows this clearly. Solana surged nearly 250x from its cycle lows to its peak. Avalanche delivered around a 55x return. But many older projects, even well-known ones, failed to keep up. Litecoin, for example, gained roughly 17x in the last cycle, underperforming both Bitcoin and top-performing altcoins. Former hype coins like NEO did even worse compared to newer networks.

The reason is simple: hype alone no longer works. Many older altcoins have large groups of bag holders and fail to solve real problems. Without growth, innovation, or adoption, they lose relevance.

Alpha vs Beta: Why Only a Few Coins Win Big

Analysts often talk about two forces in crypto investing: alpha and beta. Alpha comes from the market rising overall. Beta is the extra return a project delivers by outperforming the market.

In the last cycle, Solana delivered massive beta by far outperforming the market. Litecoin and NEO, on the other hand, lost value compared to the benchmark. This is why only a small number of altcoins ever deliver life-changing returns.

Why 2026 Could Be Different

Despite all the pain, there are signs that the altcoin market may be nearing a turning point. When altcoins are measured against assets like gold or Bitcoin, valuations are at some of their lowest levels since major market crashes.

This does not guarantee an immediate bull run. However, the analyst said that it signals that downside risk is shrinking and a recovery phase could begin. If liquidity improves and stronger projects continue to grow, a new generation of altcoins could outperform in 2026.

Survival of the Strongest

The reality is harsh: most altcoins will not survive. Crypto is still a young technology, and progress comes through trial and error. Newer networks often outperform older ones simply because they are more efficient, scalable, and relevant.

That said, a small group of altcoins showing real adoption, rising usage, and strong on-chain data may still have the potential to deliver major gains.