Sixty-Seven Percent of Cryptocurrencies are Still Down Over 90% From Their ATHs

By Andy Hao


Despite a recent bull-run for Bitcoin holders, investors in almost every other cryptocurrency are still waiting for the value of their tokens to rise. Among the 169 assets listed on Messari’s OnChainFX dashboard with data, 114 are still 90% or more down from all-time highs. In 2017, it was common to see altcoins gaining in value far quicker than established coins like Bitcoin, but in 2019 that trend seems to have reversed. 


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Bitcoin is continuing to outpace the anemic growth of altcoins in 2019, with its market dominance now above 60% for the first time in over a year. Another way to look at the stark contrast between Bitcoin’s current position and that of other altcoins is to examine their break-even multiple. If the value of every cryptocurrency suddenly increased by 1,000% tomorrow, Bitcoin would be trading at $110,000, over 5x higher than its 2017 high. But the rest of the crypto world tells a different story. Almost 70% of currencies would still be below their all-time highs from 2017 and 2018 even with a 10x price jump.


Why is this happening? There are a couple possible explanations. Most of the major crypto announcements in 2019 have come from companies either building on Bitcoin or validating the need for it. Fidelity is soon to be storing Bitcoin for clients, TD Ameritrade is exploring Bitcoin trading, and Square has now enabled Bitcoin funding and withdrawing from their Cash App.


In addition, Facebook’s Libra announcement seems to have prompted additional capital to flow into the world of cryptocurrency, most of which has accrued to Bitcoin. Since the June 18th Libra news, Bitcoin is up over 23%, as the corporation-backed initiative has further validated the need for sound money that is not controlled by corporations or governments. 


Finally, another possible reason for the lack of price growth in the altcoin market could be the slow shipping cadence from most teams. Not many altcoins have been able to amass a significant community of users, perhaps leading investors to think more critically about the valuations of their projects.


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