If you were in the crypto markets in 2017, you probably know the Altcoin ICON (ICX). Two years ago this cryptocurrency was literally all the rage, and many called ICON the “Ethereum of Korea” among other optimistic titles.

That made sense back then. The cryptocurrency had started a parabolic run that pale other altcoins in comparison. There were also individuals like the board chairman of well-known blockchain venture fund Dan Morehead, who allegedly remarked in an interview with Bloomberg that ICX was his largest altcoin position.

Related Reading: Altcoin Volatility Is Rising, But The Alt Season Will Not Come Until Bitcoin Volume Returns

Near the peak of the altcoin bull run, ICX had risen to an all-time high of $ 12.22 – 11,100% higher than the original coin offer price of $ 0.11. The crazy thing is that some people expected the cryptocurrency to continue growing in importance. This author recalled that some investors were hoping ICON would outperform altcoin operators Ethereum and XRP.

However, a lot has changed since then. In fact, as noted by Doggie Tail Crypto Capital partner Spencer Noon, ICX has just completed “a full trip back to its ICO price after its 111x winnings”. This means that “$ 10,000 invested in the ICO would have been worth more than $ 1 million at ATHs and is back on your cost basis today.” Ouch.

Believe it or not, today ICON $ ICX completed a full round trip back to its ICO price after winning 111x:

• ICO Price: $ 0.11
ATH: $ 12.22 (1/9/18)
• Today: $ 0.11

– Spencer Noon (@spencernoon) November 26, 2019

This underscores a much larger trend in the crypto market: Altcoins have outperformed Bitcoin despite technological developments. With big, big margins. In fact, Bitcoin dominance – the percentage of the cryptocurrency market that is made up of BTC – is now 66%, up from 33% at the altcoin high in 2018.

To put this in some perspective, Ethereum is trading at $ 150 at the time of this writing, which is almost 90% below its high of $ 1,400 seen in the last bull market. Bitcoin, on the other hand, is trading at $ 7,200, which is relatively nearly 60 percent below its all-time high of $ 20,000.

Altcoin collapse has a good reason

According to Willy Woo, partner at Adaptive Capital and prominent cryptocurrency analyst, there are good reasons for the collapse of altcoins. He recently found that of the 4,978 altcoins listed on CoinMarketCap (there are many more, by the way), only 40 of the top crypto assets offer investors enough liquidity to be considered “good investments”.

Coinmarketcap lists 4978 coins. Here are the top 50 by volume. Below the top 40 are not even registered, i.e. 4938 coins are illiquid.

Investors want liquidity on entry and liquidity on exit. Very few coins have credible liquidity to be good investments. pic.twitter.com/3kXgn3NWjV

– Willy Woo (@woonomic) November 13, 2019

Liquidity is the most important aspect of any asset because without it, orders can get stuck waiting to be executed, slippage can occur, and asset prices can fluctuate sharply as the analyst points out.

As a result, investors have flooded those low-cap altcoins, which don’t even have enough liquidity, into the market leaders and cemented the wealth at the top of the cryptocurrency food chain, Bitcoin.

Related Reading: Published Author and Altcoin Trader Highlights 5 Crypto Sets To Outshine Bitcoin

Featured image from Shutterstock

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