Why not every Altcoin will Perform the same as the last Bullrun.
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If we look in the past – not every coin remained in the Top 10, Top 50 or even Top 100 the bullrun after. So we got to understand and learn what really influences crypto into becoming a good investment. Firstly, the value of cryptocurrency is influenced by three main things: supply and demand, how people see the market, and competition. These factors play a significant role in determining whether the price of crypto goes up or down. It's important to understand these factors to get the dynamics of the crypto market. Image of the TOP 20 Coins from 07 jan 2018 where around this time, BTC and ETH was around the peak. Now, lets see the difference of how the TOP 20 Cryptocurrencies changed from 2018 to the first peak of the bullrun in 2021: From the two images, the coins that have not lasted within the top 20, for these two snapshot dates are the following: – NEM: Rank 6 in 2018 with a price of $1.804 and Rank 39 in 2021 with a price of $0.44 – IOTA: Rank 10 in 2018 with a price of $4.07 and Rank 24 in 2021 with a price of $2.10 – DASH: Rank 11 in 2018 with a price of $1,285 and Rank 45 in 2021 with a price of $287.89 – EOS: Rank 12 in 2018 with a price of $12.52 and Rank 22 in 2021 with a price of $6.74 – MONERO: Rank 13 in 2018 with a price of $459.33 and Rank 23 in 2021 with a price of $327.32 – NEO: Rank 14 in 2018 with a price of $102.43 and Rank 34 in 2021 with a price of $64.11 – QTUM: Rank 15 in 2018 with a price of $85.77 and Rank 78 in 2021 with a price of $15.01 – Bitcoin Gold: Rank 16 in 2018 with a price of $302.25 and Rank 58 in 2021 with a price of $124.27 – Ethereum Classic: Rank 17 in 2018 with a price of $40.79 and Rank 53 in 2021 with a price of $20.43 – LISK: Rank 18 in 2018 with a price of $34.11 and Rank 103 in 2021 with a price of $6.8314 – ICON: Rank 19 in 2018 with a price of $9.91 and Rank 76 in 2021 with a price of $2.5798 – NANO: Rank 20 in 2018 with a price of $26.51 and Rank 109 in 2021 with a price of $5.8455 While some of these are still decent gains if you invested into them in the bear market before, you can see they slowly become pushed out as newer projects move into the space which sometimes makes investors flood their money onto them. But the decline in these coins are clearly shown. Lets now see the second peak of the bull run that took place near the end of 2021: There are several new projects that have joined onto the crypto space, creating more competition, flow of money and adoption over time. But each cryptocurrency can offer good returns however not all will remain the same as before. On one hand they can continue to develop and progress, making the project more valuable in the eyes of investors which results in the price to increase. And on the other side some projects continue to decline because of regulations, the team left or done a rug-pull or even due to scams and hacks – this results in the price going down. lets now look at the most recent coin market cap snap shot on the 8th October 2023: Image of the TOP 20 coins from 8 October 2023 Though the last image is not in the bullrun (as thats to come soon) but you can generally over time projects change, new ideas flow and more money comes into the cryptocurrency space. While throughout all these snapshots, BTC and ETH did not move from their positions – this is a clear indicator that in order to play 'safe' they would be the best investments (NFA). Many altcoins can still perform really well outside of the TOP 20 or even outside of the TOP 100 but then you will need to consider your risk factor when investing into these projects. The main reason why an altcoin fails is because it doesn't have a practical use. This means that it does the same thing as another more popular altcoin, making it less valuable to users. I recommend that you first do your own research (DYOR). This means evaluating the basics of a project, like the team, their experience and qualifications, the problem they want to solve, and their proposed solution. It's also important to review the project's roadmap, whitepaper, and other relevant documents to understand their goals. In conclusion, doing your own research (DYOR) is crucial when investing in cryptocurrency. By researching, you can make better decisions and avoid scams or bad investments. Whether you're an experienced investor or just starting out, taking the time to evaluate a project's fundamentals, community, and market performance can help you reach your investment goals. Hope this has helped 🙂 submitted by /u/YourMovieBuddy |
