A recent analysis by one analyst has shown a clearer picture of how volatile the cryptocurrency market has been, especially for those who took a chance on lesser-known altcoins a few years ago.
The analyst studied the top 100 cryptocurrencies as they stood in December 2017 and found that the fortunes of these digital assets varied significantly for the last six years.
From Highlights to Obscure: The Rise and Fall of 2017's Crypto Stars
Six years in the financial world is relatively short, but it can seem like an eternity in the fast-paced cryptocurrency market. An X (formerly known as Twitter) user named davanai shared his analysis of the top 100 cryptocurrencies in 2017, revealing some surprising numbers.
Of the top 10 cryptocurrencies, New Economic Movement (XEM) is the only one to have dropped out of the top 100 list. On the other hand, previous giants like Monero and Dash are on the verge of breaking out of the elite group.
In the midst of these falls, the Twin Towers from the crypto world, Bitcoin (BTC) and Ethereum (ETH), have maintained their positions in 1st and 2nd place, respectively. XRP, one of the most discussed cryptocurrencies in the 2017 bull run, has fallen only slightly to fifth position.
Cardano (ADA)He too, although he loses two places, remains in the top ten. However, not all stories are ones of resilience. Populous Coin (PPT), once the 19th largest cryptocurrency, is now a shadow of its former self, trading 99.97% below its all-time high.
Distinguish winners from losers
Interestingly, the analyst classified 27 of the top 100 cryptocurrencies as โscams.โ While this does not directly confirm any hoax, these digital currencies have all but disappeared in terms of market presence and activity.
Of the top 100, only 21 reached all-time highs during the first three months of 2021, while 68 remain below their highest valuations of 2017 or โalmost a scam,โ according to the analyst.
Research statistics:
๐ข 5 out of 20 are worth more than ATH 2021
โซ 27 of 100 SCAM project
๐ด 68 out of 100 are below the 2017 ATH or almost a scam๐ข 21 of 100 ATH updated in 2021
๐ด 79 out of 100 will never update ATH-davanai๐ป (@0xdavanai) October 2, 2023
On the positive side, three altcoins have risen in their rankings since 2017. Binance Coin (BNB), Chainlink (LINK), and Dogecoin (DOGE) have bucked the broader trend, proving that it's not all doom and gloom in the world of altcoins.
The findings provide a warning for cryptocurrency investors. As the analyst noted, buying the top 100 cryptocurrencies would likely result in losses over time. As traditionally understood, diversification may not apply in the high-risk world of cryptocurrency investing.
โข You should buy altcoins with a clear understanding of the situation and without relying on luck.
โข Don't listen to fables about diversification, because only 3 out of 100 tokens are profitable in the long term.
โข Cryptocurrency profitability is all about mindset and strategy
-davanai๐ป (@0xdavanai) October 2, 2023
Featured image from Unsplash, chart from TradingView
