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 are showing performance in the red. This is evidenced by their performances 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, all have 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 fall in their prices is even more impressive if we compare the highest historical level of cryptocurrencies. Thus, bitcoin reached its 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 prism of comparison, 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 in 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 Interactiv Trading. This is why the smaller cryptocurrencies suffered the biggest declines.
The other phenomenon that can be observed is that of the rise in power of the dominance of bitcoin (i.e. the balance of power of bitcoin compared to the entire cryptocurrency market), which does not hadn’t changed much in 2021.
Bitcoin thus weighed 41% of the entire cryptocurrency market (in global capitalization) at the start of the year. This ratio is now at just over 47%. The phenomenon is interesting because until now, we have observed a decline in the dominance of bitcoin within the market (it was 71% in January 2021 for example)
“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, its price is worth only $0.00008. While 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 discover gradually, some of which will increase in power”, 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 the USDT stablecoin of Tether, or even one that is less thought of: ether.
“We see that ether had a better performance than bitcoin and since they are falling behind in their The Merge plan, some investors are wondering if they will go all the way, and faced with successive delays ether has lost its lead over bitcoin in terms of performance,” the expert continues.
“A lot of positive things”
However, all 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 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 lived 2018, 2019 where cryptocurrencies collapsed. At the beginning of the crisis in March 2020, bitcoin fell to 4,900 dollars, nobody wanted because it was not something sure, 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” who invest in the blockchain”, estimates Xavier Fenaux.
We must also take the figures cited above in the article with some caution, the crypto market remaining much smaller and much more volatile than traditional finance.
For Xavier Fenaux, for example, we must not forget the performance of cryptocurrencies since the lowest: in 2021, the solana cryptocurrency was considered a mega star, a competitor of ether. Although it has lost 85% of its value since its all-time high, it has gained 2500% since January 2021 when its price was worth just over a dollar. Today, it’s hovering around $30, despite Thursday’s outage of the Solana blockchain.