Why Are "Zombie Coins" Suddenly Making a Comeback?

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The crypto market has been buzzing with unexpected activity lately. While most traders expected this bull run to focus on new, trendy assets, a surprising trend has emerged—so-called "zombie coins" are experiencing massive price surges. If you're wondering what XLM, HBAR, or XRP are and why they're suddenly rallying, you're not alone.

Who's Buying These Forgotten Cryptocurrencies?

Two primary groups are driving this unexpected resurgence:

  1. Institutional Investors (Primarily U.S.-Based): Large financial entities are pouring money into these assets
  2. Retail Investors (Led by South Korea and Japan): Everyday traders, particularly older demographics, are jumping into crypto

The South Korean Crypto Boom

Recent data from South Korea paints a fascinating picture:

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Top-Performing Zombie Coins on Upbit

Here's what's trading at astonishing volumes on Korea's largest exchange:

CoinUpbit Volume (24h)Binance Volume (24h)
XRP$5.557B$5.627B
HBAR$1.224B$1.297B
XLM$1.264B$736M
ENS$841M$166M
SAND$582M$267M
IOTA$321M$181M
ALGO$388M$317M
ADA$534M$1.122B

Why These Coins?

Several factors explain this phenomenon:

  1. Regulatory Compliance: Many qualify under ISO 20022 standards for international payments
  2. Institutional Preference: Fit within traditional financial frameworks
  3. Retail FOMO: Particularly strong in Asian markets

The New Bull Market Logic

This rally differs fundamentally from earlier 2024 trends:

The ISO 20022 standard plays a crucial role—these compliant assets are being prioritized for international payment systems due to their:

FAQ: Understanding the Zombie Coin Rally

Q: Why are older coins outperforming new ones?
A: Institutional money favors compliant, established projects over speculative new tokens.

Q: Is this trend sustainable?
A: While the momentum is strong, all rallies eventually correct. Watch trading volumes for signs of topping.

Q: Should I invest in these coins?
A: As always, conduct thorough research and consider your risk tolerance before investing.

Q: How does ISO 20022 affect crypto?
A: Compliant tokens gain priority in international financial systems, increasing their utility and demand.

Q: Why is South Korea so influential?
A: Korean retail investors have shown remarkable ability to move markets, often leading global trends.

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When Might This Rally End?

Key indicators suggest watching:

  1. Upbit Altcoin Volume: Current levels match March 2024 peaks
  2. Retail Participation: When novice investors fully embrace the market, corrections often follow
  3. Regulatory Developments: Changes in compliance standards could impact these assets

Remember: Bull markets represent "a great withdrawal"—when everyone finally buys in, it often signals a temporary top. Stay informed, stay cautious, and most importantly, stay diversified.