Altcoins Urge Rescue as $460 Billion Loss to Hit New Low
Since Bitcoin began its 2019 charge starting with the “April Fool’s day rally,” most altcoins seem to be slipping when compared to the top-ranked cryptocurrency. There is now a growing debate about whether the altcoin market will experience the same massive price gains seen in Bitcoin during this current bullish cycle.
The global market value of altcoins has dropped from a peak of $554.5 billion in 2018 to $91.5 billion today, evaporating more than 80%. In addition to Bitcoin, other coins taking blockchain technology as the bottom layer is called altcoins. altcoins is not a counterfeit coin, it is based on Bitcoin’s source code or ideas.
According to Coinmarketcap, the market value of bitcoin has increased from 32.81% to 69.85% of the total market value since 2018. This means that the total market value of more than 2,400 kinds of altcoins in the world has dropped to about 30%. As the price of altcoins fell sharply, Dapps on public chain has withered with gambling and blockchain games.
Influenced by a series of factors such as global interest rate cuts, China-US trade war and Libra issuance this year, a large number of institutional funds have entered the market. Large institutions prefer Bitcoin as a hedge asset rather than a altcoins with low popularity. Individual investors lack belief in altcoins accelerate the transfer of funds to Bitcoin, resulting in the price of altcoins dumping.
Since the beginning of 2019, the price of over 50% of the cryptocurrency is even lower than that at the end of 2018. Only three of Top50’s cryptocurrency outperform Bitcoin, in the latest quarter, nearly 60% of Top50’s cryptocurrencies have returns of -30%.
Different altcoins have different means of self-rescue, but mainly the improvement of marketing mode. Among them, the most common and most frequently used means are: investment advising, pyramid selling and Ponzi scheme. This self- rescue method is featured by investment rebate. Its essence is that altcoin project formulates corresponding rules to enable the users to obtain extra benefits, thus attracting more investors to raise the price.
Altcoins take various means to lockup and seek cooperation from capitalists to attract individual investors to buy at a high place. This means altcoins are faced with less pressure to sell, to a certain extent, to increase their delivery and harvest individual investors.
Some Chinese public chains have begun to explore a new self-rescue mode, creating a commercial BaaS platform on public chains focusing on the B-end application scenario. Although this self-rescue mode may not achieve immediate results in the secondary market, in the long term, it can make up for the absence of value of altcoins.