An analyst using the name @0xdavanai on the X platform makes important evaluations about some altcoin projects. Accordingly, he recently conducted a comprehensive analysis of the top 100 cryptocurrencies by market cap in December 2017. Their findings challenge the conventional wisdom of basket making as a default investment strategy in the crypto space.
Facts about altcoin projects since 2017
In his analysis, @0xdavanai looks at the top 100 cryptocurrencies of 2017. Accordingly, he discovered that only 21 have surpassed their all-time highs by 2021. Bitcoin (BTC) and altcoin Ethereum (ETH) maintain their positions as the top two cryptocurrencies by market cap. On the other hand, other assets have experienced significant changes.
I analyzed the TOP 100 CMC from ATH 2017
40 hours of analytics in 5 minutes🧵👀👇 pic.twitter.com/7gWwmDFszo
— kavanai👻 (@0xdavanai) October 2, 2023
Notably, XRP, once hyped during the 2017 bull run, has fallen only one spot. Accordingly, it currently ranks 5th on CoinMarketCap’s list. Similarly, altcoin Cardano’s native token ADA fell just two places to eighth place. However, the analysis also revealed significant decline stories. For example, Populous Coin (PPT), ranked 19th, is currently trading approximately 99.97% below its all-time high. It is also in the two thousandths on CoinMarketCap.
The problem of “scam” focused cryptocurrencies
The analyst found that 27 altcoin projects in the top 100 list in 2017 were flagged under the “scam” category. It should be noted that this identification does not mean that they are part of approved fraud campaigns. Instead, these cryptocurrencies experienced a complete loss of interest. It also showed no signs of activity.
Surprisingly, only three altcoins managed to improve their positions compared to their 2017 rankings. These cryptocurrencies are Binance Coin (BNB), the core native token of Binance’s ecosystem. Chainlink (LINK), the core token of the decentralized oracle infrastructure. Finally, the leading meme coin Dogecoin (DOGE).
Re-evaluation of strategy
The analysis led @0xdavanai to question the effectiveness of the buy-and-hold approach, especially for mid-cap altcoins. They warned that even if an investor buys all of the top 100 cryptocurrencies, mathematical probabilities point to losses over time. Profits will not cover losses. Conclusion: Don’t rely solely on the diversification myth as only 3 out of 100 tokens are profitable in the long run.
However, there were some exceptions in the 1st quarter of 2022, when some altcoins from 2017-2018 experienced sudden price increases. These include ZCash (ZEC), Eos (EOS), Bitcoin Cash (BCH). It was also featured in Dash (DASH) and Ethereum Classic (ETC). Accordingly, it gave hope to long-term owners of these assets. From Kriptokoin.com, @0xdavanai’s analysis challenges the common belief regarding the altcoin basket. On the other hand, he emphasizes that investors should be selective and cautious when choosing cryptocurrencies for their portfolios.
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