In the event you have been round within the crypto markets in 2017, you possible know the altcoin ICON (ICX). Two years in the past, this cryptocurrency was actually all the craze, with many calling ICON the “Ethereum of Korea” amongst different optimistic titles.
On the time, this made sense. The cryptocurrency had launched into a parabolic run that made different altcoins pale compared. Additionally, you had people just like the chief govt of distinguished blockchain enterprise fund Dan Morehead, purportedly remarking that ICX was its greatest altcoin place in an interview with Bloomberg.
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Close to the height of the altcoin bull run, ICX had rallied to an all-time excessive of $12.22 — 11,100% greater than its preliminary coin providing worth of $0.11. What’s loopy is that some people anticipated for the cryptocurrency to proceed to achieve traction, with this author recalling that some traders hoped ICON would surpass altcoin incumbents Ethereum and XRP.
Although, much has changed since then. In truth, as noted by a accomplice at Doggie Tail Crypto Capital, Spencer Midday, ICX has simply accomplished “a full spherical journey again to its ICO worth after its 111x positive factors.” Which means that “$10,000 invested within the ICO would have been price $1m+ at ATHs and at this time it’s proper again at your price foundation.” Ouch.
Laborious to imagine this however at this time ICON $ICX accomplished a full spherical journey again to its ICO worth after 111x positive factors:
• ICO worth: $0.11
• ATH: $12.22 (1/9/18)
• Right now: $0.11— Spencer Midday (@spencernoon) November 26, 2019
This highlights a a lot bigger development within the crypto market: altcoins, regardless of technological developments, have extensively been underperforming Bitcoin. By giant, giant margins that’s. In truth, Bitcoin dominance — the share of the cryptocurrency market that’s made up of BTC — is now at 66%, up from the 33% seen on the altcoin peak of 2018.
To place this in some perspective, Ethereum is buying and selling at $150 as of the time of penning this, which is sort of 90% shy of its $1,400 peak seen within the final bull market; Bitcoin, however, is at $7,200, which is a comparatively mere 60-odd p.c beneath its all-time excessive of $20,000.
Altcoin Collapse is For Good Motive
In line with Willy Woo, a accomplice at Adaptive Capital and a distinguished cryptocurrency analyst, the collapse in altcoins is for good purpose. He just lately famous that out of the 4,978 altcoins listed on CoinMarketCap (there are numerous extra, by the way in which), a mere 40 of the highest crypto belongings present traders with sufficient liquidity to be thought of “good investments.”
Coinmarketcap lists 4978 cash. Here is the highest 50 by quantity. Beneath the highest 40 does not even register i.e. 4938 cash are illiquid.
Buyers need liquidity at entry and liquidity on exit. Only a few cash have credible liquidity to be good investments. pic.twitter.com/3kXgn3NWjV
— Willy Woo (@woonomic) November 13, 2019
Therefore, traders have been flooding out of those low-cap altcoins that don’t even have sufficient liquidity into the market leaders, consolidating wealth on the high of the cryptocurrency meals chain, Bitcoin.
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