Crypto News

Why Altcoins Have Not Recovered in the Last 2 Years

Why Altcoins Have Not Recovered in the Last 2 Years

Crypto markets have turned green today and yet again it is bitcoin leading the rally. For the past couple of years, altcoins have been battered at the expense of their big brother and they are showing no signs of recovering just yet either.

Altcoins Apathetic, Bitcoin Still King
The past two years have been pretty miserable for anyone holding altcoins. The majority of them are still 80 to 90% down from their all-time highs and recovery looks a long way off, if it will happen at all.
Only a fraction of them made and held gains in 2019 and all of them crashed by epic proportions the previous year following explosive growth in 2017. So why hasn’t this been repeated?
LongHash has been looking into possible reasons for this and one is that people generally trust bitcoin more. It has been around the longest, has way more media coverage than any other crypto asset, and has become a recognized store of value.
Bitcoin price volatility has declined as it has gained more users over time. Recent events in the Middle East have also reaffirmed Bitcoin as a safe haven asset. Altcoins as yet have not seen the adoption rates of their big brother which has become the standard in the industry.
The Bitcoin network is also a strong factor as to why is dominates the altcoins. It is resistant to change and growing in strength which can be seen through hash power figures that hit another new all-time high last week.
The report uses the failure of the SegWit2x plan as an example of bitcoin’s decentralization and lack of overall influence, aside from those whales that hold a lot of BTC. Conversely, Ripple’s XRP token is highly manipulated by the company that owns it, leading to a dump down to its lowest level for over two years.
There is also a lot of innovation going on with bitcoin at the moment, as the network evolves through secondary layers such as the Lightning Network. Ethereum is currently the smart contract standard but development is also occurring on the BTC network through the integration of Tapscript.
Lacking Crypto Liquidity
Most of the reasons for the failure of altcoins to recover have been due to the successes of bitcoin, especially over the past year. Recent reports indicate as many as 99% of the altcoins listed on popular analytics websites such as coinmarketcap.com have virtually no liquidity and are therefore untradeable.
It was also reported that the number of dying crypto projects in 2019 was not as bad as the previous year, but that doesn’t say much in the grand scheme of things.
Aside from Ethereum, which is expanding rapidly into decentralized finance markets, the rest of the altcoins are still inferior when compared to bitcoin in terms of investment potential. It may be a while before that trend changes.
Will altcoins finally recover in 2020? Add your comments below.

Images via Shutterstock The post appeared first on Bitcoinist.com.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Related Crypto News

Bitpatt.com, a Safe, Fast and Reliable P2P Crypto Exchange, Launches Operations
While there are many crypto exchanges, fear of hacking and theft has slowly crept into crypto traders due to...
2020 Is Becoming the Year of Staking With Some Major Achievements
While both PoW and PoS have a lot to offer, this year, in particular, is promising to be a...
Community-Verified Oracle Platform Aims to Better Chainlink’s Accuracy
DeFi-focused oracle platform DIA is using crowd-sourcing to improve the accuracy of price oracles. Oracle platforms, which provide links...
Alleged Twitter Hack ‘Mastermind’ Owns $3 Million in Bitcoin, Bail Set at $725K
Regional reports from Tampa show that the alleged “Mastermind” behind the July 15, Twitter hack owns more than $3.3...
Bitcoin Market Cap Is Now Bigger Than Intel or Coca-Cola
Bitcoin overtakes Intel and Coca-Cola at a market capitalization of $205 billion. Amid a major bullish trend on cryptocurrency...
Volatility Data Suggests Bitcoin Price Drop to $10K Before Rally Resumes
Volatility metrics suggest Bitcoin price may revisit $10,000 before restarting the rally to a new 2020 high. A recent...

Featured Crypto News

Bitcoin Price Climbs to $11,200, But Three Factors Hint at a Pullback
The price of Bitcoin spikes to $11,200 but three key factors suggest that a short-term pullback is likely as...
Bitcoin Could Hit $12K on Ethereum-Tailing Behaviour: Analyst
Bitcoin is eyeing a breakout towards $12,000, according to crypto-chart analyst Josh Rager. The analogy appears out of Ethereum’s...
Unexpected Factor That Suppressed Bitcoin Bulls in 2019 Is Now Gone
If you’ve been involved in the Bitcoin market over the past year, you know of PlusToken. PlusToken was a...
Ether Rockets 50% in 5-Year Anniversary Month: What’s Behind the Rally?
As Ethereum turns five years old, Ether is up 50% over the past month with two main catalysts driving...
This Simple Bullish Pattern Suggest Ripple (XRP) Could Surge Above $0.25
Ripple is up over 2% and it is showing positive signs above the $0.2400 resistance zone against the US...
Will Ethereum Overtake Bitcoin as the World’s Leading Token?
Ever since it was first released to the public in January 2009, Bitcoin has been the leading player in...