Altcoin Analysis: 67% of All Altcoins Are Still 90% Below Their All-Time High

July 24, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Undoubtedly Bitcoin got the highest attention in crypto space in the last weeks. And so it’s not just the price that drew attention to it, but other factors as well, such as the upcoming halving, the strong fundamentals and the relatively high Bitcoin dominance. And so the (subjective) impression arises that the interest in the Altcoins has diminished.

In today’s article we would like to show once, how strong or weak many Altcoins have performed in recent months. See this as a valuable input to understand why Bitcoin is referred to as a store of value and many investors have their largest position in BTC.

Bitcoin is stable in value compared to the Altcoins

Even though the overall mood in the market is significantly better compared to the beginning of the year, there are still some investors who are desperately waiting for a resurrection of their “old” coins. So, while some could look forward to the recent Bitcoin bull run; However, the big party mood did not materialize due to the underground Altcoin performance. The following statement speaks for itself:

Of the 169 assets listed on Messari’s OnChainFX dashboard, 114 are still 90% or more off the highs ever.

That a look at your own portfolio in these circumstances is not fun, should be clear. But where does the sudden turnaround come from? After all, it was customary in 2017 for Altcoins to gain value much faster than established coins such as Bitcoin. Now two years later, in 2019, this trend seems to have reversed.

The following graph shows how many of the 169 listed Altcoins are at what percentage of their all-time highs. For example, 148 out of 164 (= 90%) Altcoins are more than 80% below their ATH.

Bitcoin, on the other hand, is growing strongly in 2019 and, especially in comparison to the Altcoins, significantly stronger, so that for the first time in more than a year market dominance has again exceeded 60%.

Another way to look at the stark contrast between the current position of Bitcoin and the other Altcoins is to look at what percentage of a coin must go to reach its ATH. If the value of each cryptocurrency (!) suddenly jumped 1,000% tomorrow, Bitcoin would trade at $110,000. That’s more than five times his 2017 all-time high. And well, what about Altcoins now? Almost 70% of cryptocurrencies would still be below their all-time highs of 2017 and 2018 despite a 10-fold jump in price.

Bad Altcoin performance is the result of various factors

So we ask ourselves: why is that? There are a few possible explanations. Let’s just start this year. Most of the key announcements for the crypto market in 2019 come from companies that either rely on Bitcoin or confirm the need for it. Fidelity will soon be stocking Bitcoin for customers, TD Ameritrade is exploring Bitcoin trading, and Square has now made it possible to integrate Bitcoin into its own system. In addition, Bakkt has officially started today.

In addition, Facebook’s Libra announcement seems to have led to additional capital flowing into the cryptocurrency world. Much of these inflows, however, landed at Bitcoin, which is also expressed in its strong dominance. Whether coincidence or not: since the official announcement of June 18, Bitcoin has risen by over 23%; Obviously, Facebook could show with Libra at least that the view on cryptocurrencies is worth a look.

Another possible reason for the lack of price growth of Altcoins could be in the project or team itself. Because many teams have been able to collect huge amounts of money in ICOs in 2017, little has happened. So there are a lot of projects, which ultimately deliver only very slowly or not at all. Regardless of the speed of the team, the knowledge of investors and users is meanwhile also greater. This raises critical questions and realizes that there are a few coins that have real Unique Selling Points (USPs). Those investors in such circumstances are more critical in the evaluation of the project should be the logical consequence.

Author: Marko Vidrih