3 Altcoins to Sell Before They Continue Eroding Your Portfolio

As Bitcoin (BTC-USD) continues to struggle, it’s an opportune time to consider offloading altcoins to sell.

As Bitcoin (BTC-USD) continues to falter, it might be an opportune time to consider offloading some altcoins to sell.

Here are three altcoins to sell that are more vulnerable than others and will continue to erode investor value.

1. Ripple (XRP)

Once an emerging crypto upstart, XRP now finds itself at a crossroads as it navigates a tricky environment. The platform made a name for itself with its transformative decentralized financial payment network, becoming a top cross-border payment solutions provider. It boasts incredible transaction speeds, capable of processing transactions within four seconds.

However, despite targeting a massive addressable market, Ripple’s performance has been shaky. It has struggled to secure a stable position while its peers continue to post healthy gains.

Furthermore, the ongoing legal battle with the Securities and Exchange Commission (SEC) complicates its situation further. Judge Analisa Torres’s nuanced verdict was a mixed bag for Ripple and its investors. Though cleared of violating securities laws in retail transactions, it was panned for direct sales to institutions. Moreover, it faces a looming threat of a $1.95 billion fine, set to weigh its valuation further.

2. Shiba Inu (SHIB)

Shiba Inu is among the most popular meme coins and has garnered a considerable online following. However, despite its popularity, it remains a remarkably speculative bet, more likely to burn investor value than not.

Consequently, the platform has struggled with massive outflows, which points to major liquidity concerns. Moreover, with the broader market shifts and regulatory roadblocks weighing down its valuation, SHIB investors will continue being as volatile as ever. Hence, for investors with a long-term investment horizon, SHIB is a clear sell, especially compared to the more established giants in the sector.

Most recently, the SHIB community has been excited about an impressive 4000% surge in its burn rate. However, the market’s response was quite the opposite, with SHIB losing upwards of 30% in value in the past month alone. Hence, it’s tough to gauge where SHIB will end up, which makes it best to avoid such a high-volatility meme token.

3. Axie Infinity (AXS)

Axie Infinity was once considered a giant in blockchain gaming. Its multi-faceted metaverse allowed players to engage with over 500 NFT-based creatures. However, despite benefitting early on from its claim as a metaverse pioneer, Axie Infinity has struggled since then.

Blockchain gaming is in decline, and according to data from Big Blockchain Gaming, 31% of blockchain games were either discontinued or canned last year. Moreover, in the first quarter (Q1) this year, the blockchain gaming sector logged 68 investment deals, representing a worrying 57% fall from the peak activity in Q1 2022.

Consequently, we’ve seen Axie shed a ton of value, dropping a disheartening 41% year-to-date (YTD). However, it hasn’t been a great investment for a while, considering it lost 50% of its value in the past three years. Perhaps some of this could be attributed to a staggering $615 million cyber theft in March 2022, which dented the ecosystem’s integrity. Hence, these challenges have left Axie struggling to regain its former glory, casting a shadow over its future.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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