Japan’s Reverse Carry Trade Could Shake Crypto: 5 Altcoins Worth Buying If the Market Survives the September Shock

Higher Japanese rates could make yen-funded positions less attractive and increase pressure on leveraged global assets. SOL has RWA and DeFi growth, QNT focuses on interoperability, NEAR on AI and chain abstraction, ONDO on tokenization, and AVAX on institutional blockchain infrastructure. A carry-trade unwind would not necessarily affect every altcoin equally, particularly if capital rotates back into projects with stronger fundamental narratives. Japanese investors who take on high interest loans to buy foreign higher-yielding investments. However, as Japan’s interest rates are climbing and the yen appreciating, those deals aren’t looking so good, which may lead to position trims in both stocks, bonds and cryptos. Japan has already used substantial resources to support the yen, while the Bank of Japan is expected to keep investors focused on the possibility of another rate increase at its September 17–18 meeting. The combination of currency intervention, higher domestic rates, and changing expectations around Japanese monetary policy has therefore increased attention on potential capital repatriation. For crypto markets, the concern is less about Japan selling one specific asset and more about what happens if global leverage begins to fall. A stronger yen can increase funding costs, while higher bond yields can make traditionally safer assets relatively more attractive. That combination could pressure speculative assets first, particularly if traders begin closing leveraged positions. Still, a carry-trade unwind would not automatically mean every cryptocurrency would decline equally. Projects with active development, institutional use cases, real-world asset exposure, or strong network activity could attract renewed interest once broader liquidity conditions stabilize. Solana (SOL): Institutional Activity Meets DeFi In spite of the weakness in some sectors of the Solana ecosystem, the coin continues to be one of the larger cap altcoins that are closely followed. In its latest ecosystem update in August, the network estimated that it had around $4 billion in real-world assets and maintained its expansion on stablecoin transactions, tokenized stocks, DeFi usage and institutional adoption. If the market becomes more favorable, SOL will not rely on a single crypto narrative and will be fine Quant (QNT): Interoperability Becomes More Important Quant remains focused on interoperability between traditional financial systems and blockchain networks through its Overledger technology. That positioning could become more relevant as banks and financial institutions increasingly examine how different digital-asset networks can communicate. Recent market coverage has also highlighted institutional interest around QNT, although the token remains highly volatile and considerably below previous market highs. NEAR (NEAR): AI and Chain Abstraction Drive the Narrative NEAR has recently regained attention as the AI and chain-abstraction narratives have strengthened. The token posted an 8%–11% move in recent trading as investors rotated toward AI-related crypto assets, while its broader strategy continues to emphasize simplified interaction across different blockchains.