Numbers to remember in the middle of a bull run. A recent analysis by Messari shows that the altcoins stars of the bull run of 2018 have still not returned to their previous levels, by far … A consecration for Bitcoin (BTC) and Ether (ETH)?
2018 star altcoins are far from their all-time highs (ATH)
Analyst Matt Casto shared this data from Messari on Twitter. The analysis firm has compiled a list of altcoins that hit their all-time high, or „ATH“, in 2018 , in order to compare their prices. And for the vast majority, the sudden fall they experienced has still not been caught up:
“ Holding assets that hit their record over 3 years ago is turning out to be a missed opportunity to deploy capital. There is a reason why 83% of assets peaked in January 2018 are now swapped between ed to -90% of ATH . “
A good example is Neo (NEO). Bitcoin Legacy particularly favored in 2017 and 2018, it reached its highest price, at nearly $ 200, on January 15, 2018. And today, although it shows an increase of +125% over one year, it is not worth more than about $ 25 , a drop of -87%. Stellar (XLM) managed to maintain its place in the top 10 cryptocurrency by capitalization, but its price also never reached its all-time high, at 0.87 dollars. Altcoin is trading this morning for $ 0.29, a level 66% lower.
In 2021, a consolidation of “big” projects?
Beyond showing the risks inherent in cryptocurrency trading, this progression also indicates that the flagship projects have tended to consolidate in recent years, to the detriment of the altcoins that swarmed in 2017. This is also what Pantera Capital reported, by predicting a Bitcoin price of 115,000 dollars : the market has concentrated, and this benefits the largest cryptocurrency.
As of December 31, 2017, BTC represented 39% of the cryptocurrency market cap. In January 2021, it represented 72% , largely crushing the capitalization of altcoins. In front of him, only Ether (ETH) manages to resist, by gaining 14% of the capitalization. It is even progressing – it was only 12% in 2017.
Altcoins are struggling to find their ATH
But for others, it is quite the opposite. XRP represented 15% of the crypto market cap in 2017 and this share drops to 1% at the start of January 202 1. Bitcoin Cash (BCH) goes from 7% to 1%, and the share of other altcoins goes from 25% to only 10%.
Bitcoin altcoins breakdown Pantera Capital
The question we can therefore ask ourselves is: will the tokens in vogue at the moment, in particular those linked to decentralized finance (DeFi), will experience the same fate? For some analysts, the projects they are linked to are more solid, but for others, a “crypto winter” could once again arise in this particular area of cryptocurrencies. Case to follow!