Top 3 Mid-Cap Altcoins to Watch as Bitcoin Falls Below $109K, ETH $4K

The crypto market has slipped over the past 24 hours, with Bitcoin dipping slightly below $109,000 and Ethereum testing its key $4,000 support level. Most altcoins are deep in the red, including XRP and BNB, which saw declines of 2.7% and 5% respectively.

Heavy liquidations in leveraged positions, particularly $330 million in Ethereum longs, have added pressure, while institutional buyers quietly accumulate off-exchange.

Despite the current pullback, experts say that these dips align with normal market volatility, historical seasonal patterns, and upcoming catalysts, hinting at rebound opportunities in the coming weeks and months. Within this context, a handful of mid-cap altcoins stand out for fundamentals that could outlast short-term price weakness.

Related: From Extreme Greed to Extreme Fear—What Can Crypto Investors Learn from the Index Trend?

Walrus: Positioning as Web3’s Data Backbone

Walrus is a decentralized storage protocol built on the Sui blockchain. Its latest feature, Seal, adds encryption and access control, making it possible to share sensitive data securely. This allows users to grant or revoke access to information like medical records or AI training datasets.

The project is positioning itself as a Web3 version of Amazon Web Services. Partnerships with Google, AI projects, and decentralized applications are expanding its reach.

Walrus is currently trading at $0.37, giving it a market cap of about $530 million. That places it firmly in the mid-cap category between $100 million and $1 billion.

The token’s all-time high was $0.73 in May, nearly double its current level. The analyst expects Walrus to retest and break past that high as adoption grows and supply gradually unlocks from its recent token generation event.

Virtuals Protocol: Building AI-Driven Economies

Virtuals Protocol (VIRTUAL) focuses on building AI-driven economies. It recently announced a target of $100 million in agent-based revenue by the end of 2025.

Partnerships with on-chain tools and rising activity on DeFi platforms have supported its momentum. With a market cap near $680 million, Virtuals is gaining recognition as a key player in the emerging AI + DeFi sector. The token is currently down by more than 4% and is trading at $1, making it a discounted buy.

Morpho: Holding Strength in DeFi Lending

Morpho is a DeFi lending layer focused on efficiency. Despite a recent major token unlock, the project has held strong with over $7 billion in total value locked. Growth in wallet activity and loan volumes signals rising adoption among users and institutions.

Morpho is trading at $1.66, down 7% in the past 24 hours, with a market cap of about $551 million. Despite the unlock pressure, Morpho’s fundamentals remain strong. Its total value locked (TVL) is about $7.13 billion, showing steady month-over-month growth.

Related: Altcoin Season Index Retreats from Highs, Ethereum Correction Adds Pressure