Major altcoins experienced a decline in the first quarter: Will XRP, Solana, and Ethereum recover in the second quarter?
April 10, 2026
Cryptocurrency investors witnessed a rough Q1 2026 with XRP, Ethereum, and Solana all dipping over 25% in value. But as Q2 kicked off, a shift occurred, leading to a rally fueled by the U.S.-Iran ceasefire. The ceasefire, declared on April 7, saw these altcoins surge to their highest levels in weeks, suggesting that the conflict was the primary force dragging prices down in the first quarter.
Looking ahead, the coming weeks hold essential events that could dictate the trajectory of Q2. The Islamabad peace talks taking place this weekend, the CLARITY Act markup, and the upcoming FOMC meeting on April 28-29 are the pivotal moments that could determine if Q2 evolves into a recovery quarter for XRP, Ethereum, and Solana.
Breaking down the individual struggles each token faced in Q1 sheds light on why XRP, Ethereum, and Solana experienced the downturn beyond the impact of the geopolitical landscape. For XRP, Ripple’s success did not translate to the token’s value as banks adopted Ripple’s infrastructure primarily in RLUSD and fiat rather than XRP itself.
Ethereum faced challenges as Layer 2 networks like Arbitrum and Optimism garnered the majority of Ethereum’s transaction volume, diverting fees away from ETH. Meanwhile, Solana’s downfall stemmed from the collapse of meme coin speculation that dominated DEX platforms on the network, resulting in a significant decline in revenue.
However, the tide seems to be turning for these altcoins as the U.S.-Iran ceasefire provided a positive boost to the market. XRP, Ethereum, and Solana all saw a surge in prices following the ceasefire, with XRP hitting $1.38, Ethereum surpassing $2,250, and Solana breaking $83 once again. The decrease in oil prices, from $113 to below $95, relieved the inflation pressure on crypto, contributing to the market-wide growth.
While the ceasefire’s stability remains uncertain, recent developments like Israel’s strikes on Lebanon have put pressure on the deal and subsequently on the altcoin rally. Despite the challenges, the recent uptrend signals a potential shift from the downwards trend seen in Q1.
As we move forward, the forthcoming events, particularly the outcome of the Islamabad peace talks, will be critical in shaping market dynamics. A successful resolution might bring an end to the war, providing relief to the market and creating new opportunities for XRP, Ethereum, and Solana to demonstrate recovery in Q2. The upcoming weeks will be decisive in determining if the momentum seen in April can be sustained to lead these altcoins into a positive performance for the remainder of Q2.
