A Closer Look at the Volatility of the Crypto Market
A recent analysis conducted by an analyst has provided valuable insights into the highly volatile nature of the crypto market, especially for those who invested in lesser-known altcoins a few years ago. The study focused on the top 100 cryptocurrencies as of December 2017 and revealed significant variations in the fortunes of these digital assets over the past six years.
The Rise and Fall of 2017’s Crypto Stars
Six years may seem short in the financial world, but in the fast-paced crypto market, it can feel like an eternity. An analyst named davanai shared their analysis of the top 100 cryptos in 2017, uncovering some surprising figures. Out of the top 10 cryptos, only New Economic Movement (XEM) has dropped out of the top 100 list. Monero and Dash, once giants, are now on the verge of exiting the elite group. Bitcoin (BTC) and Ethereum (ETH), on the other hand, have maintained their positions at 1st and 2nd place respectively. XRP, one of the most talked-about cryptos during the 2017 bull run, has only slipped slightly to 5th position. Cardano (ADA) remains in the top ten despite losing two spots. However, Populous Coin (PPT), once ranked 19th, has experienced a drastic decline and now trades at nearly 99.97% below its all-time high.
Distinguishing Winners from Losers
Interestingly, the analyst classified 27 out of the top 100 cryptocurrencies as potential scams. Although this doesn’t confirm any deceit directly, these digital currencies have virtually disappeared in terms of market presence and activity. Among the top 100 cryptos, only 21 achieved record highs in the first three months of 2021, while 68 remain below their highest valuations from 2017 or are considered “almost a scam” according to the analyst. Dogecoin (DOGE), however, has defied this trend, showing that not everything is doom and gloom in the altcoin world.
A Cautionary Tale for Crypto Investors
The findings of this analysis serve as a warning for crypto investors. As the analyst pointed out, investing in the top 100 cryptos would likely result in losses over time. The traditional concept of diversification may not apply in the high-stakes world of crypto investing. The analyst advises buying altcoins with a clear understanding of the situation rather than relying on luck. They also debunk the myth of diversification, stating that only three out of 100 tokens are profitable in the long run. Cryptocurrency profitability is all about mindset and strategy.
Hot Take: Be Mindful and Strategic in Crypto Investing
The analysis of the top 100 cryptocurrencies from 2017 reveals the unpredictable nature of the crypto market. It’s crucial to approach altcoin investments with caution and avoid relying solely on luck. Diversification may not guarantee success, as most tokens fail to generate profits in the long term. To navigate this high-stakes environment effectively, you need to adopt a strategic mindset and develop a well-thought-out investment strategy.
Source: https://x.com/0xdavanai/status/1708858418361143509?s=20
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