The crypto market is bleeding, and altcoin holders are feeling the pain. Recent data from IntoTheBlock shows that most of the people who invested in tokens such as Toncoin (TON), Aerodrome Finance (AERO), and Optimism (OP) are deep in the red, with some losses nearing 100%.

However, the grim numbers notwithstanding, on-chain data suggests that some of these assets still have strong fundamentals, suggesting that they could be potentially undervalued.

The Painful Reality for Altcoin Holders

According to IntoTheBlock’s analysis, a staggering 96% of TON holders are losing money. Similarly, 97% of AERO and 98% of OP investors are underwater. Even popular tokens like Polygon (MATIC) and Worldcoin (WLD) haven’t been spared, with just 1% of their holders seeing any returns on their investment.

However, in a pretty bad market, the worst hit seems to be Axie Infinity (AXS), with 100% of those owning the token losing substantial portions of their capital.

The broader crypto market isn’t helping either. Bitcoin’s dominance has jumped to a four-year high, leaving altcoins in the dust. Additionally, Ethereum (ETH), the second-largest digital asset by market capitalization, has sunk to bear market lows, dragging the rest of the ecosystem down with it.

However, none of these are lost, as some tokens have shown resilience in usage metrics. IntoTheBlock highlighted Toncoin, for instance, which, despite a dip in active addresses, is still above last year’s levels when it started its impressive rally.

AERO has also seen active addresses cut in half since its “Base season” peak. Nonetheless, its transaction volume remains steady, which analysts say is an indicator of continued engagement within the network despite fewer users.

The situation is almost the same on Optimism, with user activity at its lowest level since 2023, but transactions have remained high.

Market Woes

These struggles are reflected in the tokens’ price actions, where, for example, TON dropped 9.2% over the past week, while AERO sank 16.8%. Priced at $0.2188 at the time of writing, MATIC has barely moved in the last 24 hours, with a miserly 0.6% gain in that time.

Year-on-year, all of the tokens on IntoTheBlock’s list are in the red, with WLD the biggest culprit, having shed almost 92% of its value and even hitting a new all-time low just two days ago.

The market conditions responsible for these losses are puzzling observers. Despite bullish catalysts like an executive order establishing a strategic BTC reserve and new ETF filings, macro factors, including a Donald Trump-triggered trade war and recession fears, are suppressing prices.