Since the cryptocurrency crash, all cryptocurrencies have dropped dramatically from their all-time highs. But some have held up better than others: bitcoin, ether and binancecoin.
After the crypto-crash, many cryptocurrencies show red performance. This is demonstrated by the performances observed both during the year, but also in relation to the 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 Trading View data. They have all fallen for a year, with levels significantly different 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 all-time high level of cryptocurrencies. Therefore, bitcoin hit its all-time high in November 2021 at $ 69,000 and was close to $ 29,000 at the time of writing, a drop of 58%.
With this comparison prism, we observe that most other cryptocurrencies have fallen even more severely: up 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 reclaiming liquidity 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 smallest cryptocurrencies have experienced the biggest drops.
The other phenomenon that can be observed is that of the increase in power of the dominance of bitcoin (i.e. the balance of power of bitcoin with respect to the entire cryptocurrency market), which had not changed much in 2021.
Bitcoin thus weighed 41% of the entire cryptocurrency market (with 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 the dominance of bitcoin within the market (it was 71% in January 2021 for example)
“We can expect more collapses”
Furthermore, the cryptocurrency Luna, which was the 13th cryptocurrency by capitalization, completely collapsed three weeks ago. Today, its price is only worth $ 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 cryptocurrency Luna. 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 power,” continues Xavier Fenaux.
The setbacks of the cryptocurrency moon have strained the entire industry. From now on, other cryptocurrencies will be closely followed, such as Tether’s USDT stablecoin, or even one that is less thought of: ether.
“We see that the ether has outperformed bitcoin and as they lag behind in their The Merge plan, some investors are wondering if they will go through with it and, in the face of later delays, the ether has lost its lead over. bitcoin in terms of performance “, continues the expert.
“So many positive things”
However, not everything is so dark. Despite the gloomy context of this period, the latter believes that the ecosystem brings “many positive things”, and that it will reach a certain maturity, with the arrival of international regulations or with the implementation of concrete applications in the life of all days.
“It is a painful time for everyone, but I experienced a 2018, 2019 in which cryptocurrencies collapsed. At the beginning of the crisis in March 2020 bitcoin dropped to $ 4,900, nobody wanted because it was not a certain thing, it had lost 65 % in a few weeks Today it is close to $ 30,000 In the space of two years the ecosystem has become much stronger, with many more projects, recognized actors in “real life” investing in the blockchain “, estimates Xavier Fenaux.
We also need to take the figures mentioned above in the article with some caution, the cryptocurrency market remains much smaller and much more volatile than traditional finance.
For Xavier Fenaux, for example, we must not forget the performance of cryptocurrencies since the lows: in 2021 the cryptocurrency solana was considered a mega star, competitor of the ether. Although it has lost 85% of its value from its all-time high, it has gained 2500% since January 2021, when its price was worth just over a dollar. Today it is hovering around $ 30, despite the Solana blockchain outage on Thursday.