The cryptocurrency market in 2025 witnessed a significant divergence in performance, with the broader altcoin sector experiencing a severe downturn while a select few tokens, notably XRP, Zcash, and Algorand, managed to defy the negative trend. According to TradingView data, Bitcoin registered a 7% year-to-date decline, largely attributed to an early-October market downturn. This event triggered a more pronounced correction in the altcoin market, which saw its total capitalization plummet by 46% from its 2025 peak.
XRP's performance was bolstered by regulatory clarity and institutional adoption. The resolution of Ripple's long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) reached a critical point on August 8, when both parties filed a joint request to dismiss all outstanding appeals. This regulatory victory, coupled with the launch of the Canary Capital XRP ETF on November 13, fueled significant price appreciation. XRP surged over 35% in July, hitting a yearly high of $3.60 on July 23. The ETF alone attracted $756 million in net positive investment in its first 11 days of operation.
Zcash benefited from a renewed market focus on financial privacy. As Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations tightened, demand for privacy-focused assets increased. Zcash's search volume on Coinbase peaked in mid-November, surpassing both Bitcoin and XRP. The token's price rose over 12-fold from a yearly low of $48 to a high of $744 on November 7. This surge was accompanied by a substantial increase in shielded-transaction usage, with the amount of ZEC held in shielded addresses climbing to about 4.5 million from 1.7 million. A key supply-side factor was the block reward reduction to 1.5625 ZEC from 3.125 ZEC on November 23, 2024, which cut daily token creation from 3,600 to 1,800 tokens.
Algorand gained traction through real-world asset tokenization. The platform's value increased due to partnerships like the one with the Enel Group on January 21, which allowed Italian residents to buy fractional shares of solar and wind installations via tokenized Energy Utility Tokens. ALGO's price rose about 48% in three weeks from late December 2024 to mid-January 2025. Furthermore, staked ALGO grew 28% quarter-over-quarter to surpass 1.95 billion tokens in Q2 2025, and the platform continued its developer-focused upgrades with AlgoKit 3.0 in March 2025 and plans for AlgoKit 4.0 in early 2026.
China's leading generative AI application, DeepSeek, provided a cautious forecast for the beginning of 2026, analyzing three major altcoins that have suffered year-to-date losses: Solana (SOL: -35%), XRP (-11%), and Sui (SUI: -64.5%).
For Solana (SOL), DeepSeek noted a chart structure of "lower highs and lower lows" with no clear bullish divergence. It identified $91.5 as a key support level (the 2025 low), with a break below potentially leading to a move to $70–$80. Resistance is seen at $135. The AI's base case for early 2026 is a move toward the $75–$110 range, stating "the path of least resistance is down."
For XRP, DeepSeek acknowledged the token's regulatory victory but presented a range-bound outlook for Q1 2026, between $1.10 and $2.40. It flagged the 200-day EMA near $2.37 and $2.90 as resistance, with $1 as main psychological support. While a long-term target of $3.5 was mentioned, a recovery above $3 in early 2026 was deemed "unlikely."
For Sui (SUI), the AI expressed concern that the network could become a "ghost chain" in a bear market, struggling to grow beyond small DeFi applications despite a TVL of $932 million. It highlighted upcoming token unlocks as a source of potential selling pressure. Key levels include $1.33 as crucial support and $1.70 as resistance for a potential move to $2.10. The base case involves a drop to $0.80 or a mild climb to $1.50, expecting "dead cat bounces" along the way.
The overarching market theme of 2025 was a preference for projects with established regulatory frameworks, practical utility, and unique functionality. The analysis suggests investors have shifted focus from speculative altcoin booms to core investment principles, setting the stage for 2026 where the adoption of privacy solutions and real-world asset tokenization will be key differentiators.
