X user @0xdavanai, a pseudonymous cryptocurrency enthusiast, examined the performance of securities that were among the top 100 biggest cryptos by market size in December 2017. He explained why diversity might not be a wise choice by default based on his findings.
Only 21 cryptos exceeded their 2017 highs in 2021: Data
One asset from CoinMarketCap’s Top 10 (New Economic Movement, or XEM), which departed the top 100 in the previous six years, and two other former high capitalization (Monero and Dash), who are extremely near to leaving the top 100. Based on information on asset values recorded at the time of the 2017 Bitcoin (BTC) all-time high, these estimates were done by X user @0xdavanai.
https://x.com/0xdavanai/status/1708858418361143509?s=20
Predictably, the top two cryptocurrencies in terms of market capitalization were Bitcoin (BTC) and Ethereum (ETH). On CMC’s top list, XRP, one of the most overhyped cryptocurrencies of the 2017 run, is currently rated #5. Similar results were achieved by Cardano’s native coin, ADA, which dropped only two spots to finish in eighth.
There are also horrific tales of agonising dropdowns inside the former top 25. For instance, Populous Coin (PPT), which was rated #19, is currently changing hands 99.97% less frequently than its all-time high and is already among the top 2,000 in the rankings.
The researcher labelled 27 cryptocurrencies from the top 100 list as “scams.” However, these cryptocurrencies may not really be a part of known fraud schemes. However, they all lost all momentum and exhibited no indications of life.
The researcher said that just 21 cryptocurrencies, including the biggest ones, were able to record new all-time highs in the first quarter of 2021. As of the time of publication, 68 cryptocurrencies are trading below their 2017 highs.
Three altcoins from 2017’s top 100 in green: See full list
Only three altcoins—Binance Coin (BNB), the primary native cryptocurrency of the Binance ecosystem, Chainlink (LINK), the foundational token of the industry’s first decentralised oracles infrastructure, and Dogecoin (DOGE), the original memetic cryptocurrency—managed to move up in the rankings from their 2017 rankings.
Therefore, for novice investors, “spray and pray” may not be the most effective “lazy” strategy, especially for mid-cap altcoins:
Even if you purchase the whole top 100, you will ultimately lose money since your profit will not be enough to offset your losses. Don’t believe the myths about diversity; just 3 out of 100 tokens are long-term beneficial.
Holders of ZCash (ZEC), Eos (EOS), Bitcoin Cash (BCH), Dash (DASH), and Ethereum Classic (ETC) were able to profit from their five-year-old bags in Q1, 2022, as previously reported by U.Today.
