Since the cryptocurrency crash, all cryptocurrencies have fallen sharply from their all-time highs. But some have held up better than others: bitcoin, ether, and bitcoin.
After the cryptocurrency crash, the performance of many cryptocurrencies is shown in red. This is evidenced by their remarkable performance throughout the year, but also by their historic highs.
Take for example the price at time t of ten cryptocurrencies on the market, including bitcoin and ether, According to Trading View data. Over the past year, all of them have declined, at significantly different levels from one cryptocurrency to another, with the exception of the Solana cryptocurrency, although the increase is slight (0.01%).
The decline in their price is even more impressive if we compare the all-time high of cryptocurrencies. Thus, Bitcoin reached an all-time high in November 2021 at $69,000 and was close to $29,000 at the time of writing, a decline of 58%.
With this comparison perspective, we notice that most other cryptocurrencies have fallen more sharply: up to -89% for dogecoin, solana or xrp, -80% for cardano, -65% for ether or -59% for penancoin.
These three cryptocurrencies, Bitcoin, Ether, and Binance Coin remain the largest cryptocurrencies in the market by capitalization, at $539 billion, $204 billion, and $46 billion, respectively.
In the course of the storm in the cryptocurrency market, all cryptocurrencies have fallen, and “investors are taking cash back as it is more volatile and ‘risky’ in times of uncertainty and less liquid because there is less exchange,” explains Xavier Fenaux, partner at Interactiv Trading. This is why smaller cryptocurrencies have suffered the biggest drops.
Another phenomenon that can be observed is the rise in the strength of Bitcoin’s dominance (i.e. the balance of power of Bitcoin compared to the entire cryptocurrency market), which has not changed much in 2021.
Thus, bitcoin accounted for 41% of the entire cryptocurrency market (in global capitalization) at the beginning of the year. This percentage is just over 47%. This phenomenon is interesting because so far we have seen a decrease in the market dominance of Bitcoin (it was 71% in January 2021 for example)
‘We can expect other crashes’
In addition, the Luna cryptocurrency, which was the 13th largest cryptocurrency by capitalization, completely collapsed three weeks ago. Today, its price is only $0.00008. While the market has more than 19,000 cryptocurrencies According to Coinmarketcap, Not all of them can survive.
Xavier Fenaux continues: “We can expect more cryptocurrency crashes, just like the Luna cryptocurrency. It’s like the beginning of the internet: there are cryptocurrencies that will die and others that we will discover gradually, some that will only get stronger.”
The setbacks for cryptocurrency Luna have affected the entire industry. Going forward, other cryptocurrencies will be closely watched, such as Tether’s USDT stablecoin, or even the less thought-provoking cryptocurrency: ether.
“We see that ether is performing better than bitcoin and since they are lagging behind in their consolidation plan, some investors are wondering if they are going to go all the way, and facing consecutive delays, ether has a lead over bitcoin in terms of performance,” the expert continues.
“Lots of positive things”
However, everything is not so dark. Despite the gloomy context of this period, the latter considers that the ecosystem brings “a lot of positive things”, and that it will reach a certain stage of maturity, with the arrival of international regulations or with the implementation of concrete implementations. in everyday life.
“It’s a painful period for everyone, but I lived 2018, 2019 where cryptocurrencies collapsed. At the beginning of the crisis in March 2020, the price of bitcoin fell to $4900, no one wanted because it was not a sure thing, it lost 65% in a few weeks, today it is close to $30,000.In two years, the ecosystem has become much stronger, with many projects, and recognized “real-life” actors investing in the blockchain,” Xavier Fenaux estimates.
We should also take the numbers above in the article with some caution, as the cryptocurrency market has remained a lot smaller and more volatile than traditional finance.
For Xavier Fenaux, for example, we must not forget about the performance of cryptocurrencies since the lowest: in 2021, the solana cryptocurrency was considered a megastar, a competitor to ether. Although it has lost 85% of its value since its all-time high, it has gained 2,500% since January 2021 when it was worth just over $1. Today, it is hovering around $30, despite the Solana blockchain outage on Thursday.