Since the crypto crash, all cryptocurrencies have fallen sharply from their all-time highs. But some have held up better than others: bitcoin, ether, and binancecoin.
After the crypto crash, many cryptocurrencies show the performance in red. This is evidenced by their performance observed both over the year, but also in relation to their highest historical levels.
Take, for example, the price at time t of the ten most capitalized cryptocurrencies on the market, including bitcoin and ether, according to data from Trading View. For a year, they have all fallen, with significantly different levels from one cryptocurrency to another, with the exception of the solana cryptocurrency, although the increase is insignificant (0.01%).
The drop in their prices is even more impressive when we compare the highest historical level of cryptocurrencies. For example, bitcoin hit its all-time high in November 2021 at $69,000 and was close to $29,000 at the time of writing, down 58%.
With this prism of comparison, we see that most other cryptocurrencies have fallen even more severely: to -89% for dogecoin, solana or xrp, -80% for cardano, -65% for ether or -59% for binancecoin.
These three cryptocurrencies, bitcoin, ether and binance coin, remain the largest cryptocurrencies on the market by capitalization, at $539 billion, $204 billion and $46 billion respectively.
In the context of the storm in the cryptocurrency market, all cryptocurrencies have fallen, “and investors are recovering cash where it is more volatile, “dangerous” in times of doubt and less liquid because there is less exchange,” explains Xavier Fenaux, partner at Interactive Trading. This is why the smaller cryptocurrencies suffered the biggest declines.
The other phenomenon that can be observed is that of the rise in bitcoin’s dominance (i.e., the balance of power of bitcoin compared to the entire cryptocurrency market), which hadn’t changed much by 2021.
For example, Bitcoin weighed 41% of the entire cryptocurrency market (in global capitalization) at the beginning of the year. This ratio is now just over 47%. The phenomenon is interesting because so far we have observed a decline in bitcoin’s dominance in the market (for example, it was 71% in January 2021)
“We can expect other collapses”
In addition, the Luna cryptocurrency, which was the 13th cryptocurrency in terms of capitalization, completely collapsed three weeks ago. Today, the price is worth only $0.00008. Although the market has more than 19,000 cryptocurrencies according to Coinmarketcap, not all of them will be able to survive.
“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 gradually discover, some of which will increase in strength,” continues Xavier Fenaux .
The setbacks of the luna cryptocurrency have taken a toll on the entire industry. From now on, other cryptocurrencies will be closely watched, such as Tether’s USDT stablecoin, or even one less thought of: ether.
“We see ether outperforming bitcoin and as they fall behind in their The Merge plan, some investors are questioning whether they are going all the way, and faced with successive slowdowns, ether has lost its edge over bitcoin in terms of performance. ”, continues the expert.
“Lots of positives”
However, everything is not so dark. Despite the bleak context of this period, the latter believes that the ecosystem brings “a lot of positives” and that it will reach a certain maturity, with the arrival of international regulations or with the implementation of concrete applications in everyday life.
“It’s a painful period for everyone, but I’ve been through 2018, 2019 where cryptocurrencies collapsed. At the start of the crisis in March 2020, bitcoin fell to $ 4,900, nobody wanted because something was not certain, it had lost 65% in a few weeks. Today it is almost $30,000. In two years, the ecosystem has become much stronger, with many more projects, recognized “real life” actors investing in the blockchain,” estimates Xavier Fenaux.
We should also be careful with the numbers mentioned above in the article as the crypto market remains much smaller and much more volatile than traditional financing.
For example, for Xavier Fenaux, we should not forget the performance of cryptocurrencies since the lowest: in 2021, the solana cryptocurrency was considered a megastar, a competitor of ether. While it has lost 85% of its value since its all-time high, it is up 2500% since January 2021, when its price was worth just over a dollar. Today it hovers around $30 despite the outage of the Solana blockchain on Thursday.