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Investors Turn to Utility-Focused Altcoins as Bitcoin Remains Flat

Investors Turn to Utility-Focused Altcoins as Bitcoin Remains Flat

Bitget-RWA2025/09/27 13:40
By:Coin World

- Grayscale highlights a market shift as utility-driven altcoins outperform stagnant Bitcoin, driven by decentralized social and gamified ecosystems. - DEGEN, tied to Farcaster and POIDH platforms, exemplifies this trend with volatile price swings and community incentives like Guinness World Record challenges. - Despite Degen Chain growth and social app integration, concerns persist over market concentration and bearish technical indicators (RSI 34.62, Fear & Greed Index 33). - Price forecasts for DEGEN di

Investors Turn to Utility-Focused Altcoins as Bitcoin Remains Flat image 0

Altcoins Take the Lead

as Grayscale Highlights Noteworthy Market Changes

The digital asset market is experiencing a significant transformation, with alternative cryptocurrencies—especially those linked to decentralized social platforms and gamified environments—outpacing Bitcoin in recent sessions. Insights from several analytics sources reveal that tokens such as Degen (DEGEN) are gaining momentum and showing heightened price swings, fueled by community-led projects and speculative interest. This pattern echoes Grayscale’s latest remarks about a fundamental shift in investor strategies, as altcoins with practical applications attract more attention while Bitcoin’s growth plateaus.

DEGEN, which operates within the Farcaster social network, is a prime example of this movement. Even after dropping 43.95% from its 2024 peak of $0.06999, DEGEN still boasts a market cap of $103.9 million and a circulating supply of 36.97 billion tokens. Its value has ranged from a low of $0.001826 in April 2025 to $0.002811 in September 2025. Experts link this volatility to elements like token burning, liquidity mining rewards, and tangible use cases, such as POIDH’s bounty initiatives. For example, POIDH—a decentralized platform for launching and funding challenges—recently put up a 10 million DEGEN token reward (worth $28,000) for breaking the Guinness World Record for the most skateboard kickflips in one minute. These efforts demonstrate how altcoins can merge blockchain value with real-world activities, drawing interest from both individual and institutional players.

The expansion of the DEGEN ecosystem is further propelled by its adoption on the Base and Degen Chain networks. By September 2025, Degen Chain is handling about 50,000 transactions daily, with plans to broaden its reach through the Degen App, a social tipping tool. Nonetheless, there are ongoing issues. A single address holds 28.96% of all tokens, sparking fears of potential market manipulation. Technical analysis also points to a bearish outlook, with the RSI at 34.62 and the 14-day Fear & Greed Index at 33, indicating widespread investor caution.

Forecasts for DEGEN’s price are highly varied. CoinCodex anticipates a drop to $0.002136 by October 2025, while other projections see a possible 310.97% surge by 2030, reaching $0.014. These conflicting predictions highlight the token’s speculative character. Short-term negative trends are attributed to macroeconomic pressures, such as regulatory ambiguity and overall crypto market instability. On the other hand, optimistic scenarios depend on the Degen App’s performance and broader adoption within decentralized social platforms.

The recent rise in altcoins signals a change in what investors value. Unlike Bitcoin, which is often seen as a store of value, tokens like DEGEN attract communities interested in practical utility and interactive experiences. Platforms like POIDH and Farcaster capitalize on this by building gamified systems that encourage user participation. However, questions about long-term viability persist. With 56.59% of DEGEN tokens distributed among smaller holders, the future of the token will rely on maintaining a balance between decentralization and the creation of meaningful use cases that drive demand.

Although Bitcoin remains a dominant force in the news, altcoins are establishing their own space within the crypto sector. Their ongoing success will depend on continued innovation, active community involvement, and adaptability to shifting market dynamics. For now, tokens such as DEGEN are at the forefront, representing the fusion of decentralized finance and social engagement.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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