When Bitcoin hit its peak during the last market cycle, altcoins were all the rage, riding the wave of success. But this time around, it's a different story.
Back when Bitcoin smashed through its all-time highs, the total crypto market cap was flirting with the $3 trillion mark. Remember November 10, 2021? That's when Bitcoin soared to a dizzying $69,000, and the entire market was buzzing. We saw a similar $3 trillion market cap tease in March this year when Bitcoin reached a jaw-dropping $73,738.
Fast forward to today, Bitcoin seems to be on the edge of yet another thrilling price discovery, but the total market cap is lagging at $2.5 trillion. That means altcoins have lost about $500 billion in value compared to their previous glory days.
What's dragging things down, you ask? Well, Ethereum's not quite the shining star it once was. Back in the last bull run, Ethereum's market cap hit a staggering $570 billion with a peak price of $4,878. In March this year, it managed a respectable $490 billion, but now it's sitting at just $317 billion, struggling to break past $2,650. That's a 46% drop from its peak three years ago. Still, some traders see this as a golden opportunity to stock up.
And Ethereum isn't alone in this lackluster performance. Other major players are feeling the pinch too. Solana's down 31%, XRP has taken an 85% nosedive, Dogecoin's lost 76% of its bark, Toncoin is 39% down, and Cardano is a staggering 88% off its peak.
Polkadot and Shiba Inu? They're not faring much better, with 92% and 78% drops, respectively. But there's a glimmer of hope for Binance Coin, which is just 16% away from hitting a new high.
Despite a surge in stablecoins, now at $177 billion compared to $120 billion in late 2021, altcoins seem to be stuck in a rut. Analyst James Check points out that this stablecoin surge might actually be making things worse for altcoins.
The sluggish altcoin scene suggests retail investors are sitting this one out, while institutional players are diving into Bitcoin ETFs, raking in over $2 billion in recent inflows.
Bitcoin dominance has climbed to over 60% for the first time since March 2021. But don't count out altcoins just yet; some analysts believe the next “altseason” is just around the corner, ready to shake things up once more. Stay tuned, because the crypto rollercoaster is far from over!
