Small-Cap Cryptocurrencies Getting RektYoung made a note of the substantial fall in market valuation of the cryptocurrency space from October to November:
Indeed, it has been a challenging year in general for the altcoins, even the ones with a more significant share of the market. Bitcoin’s expanding dominance was the first factor to hit hard against their growth, and even with the major cryptocurrency falling away somewhat, no altcoins have managed to take the initiative and rally. Early on in the year, it was Litecoin that was credited with sparking the cryptocurrency spring that helped Bitcoin break away from its bearish 2018. Since then, there has been very little to write home about for coins with smaller market caps, and things only look to get worse.
In October, valuation of the crypto market was $255 billion. Today, it is $184 billion, down by more than 27% in less than two months.— Joseph Young (@iamjosephyoung) November 25, 2019
It's actually nearing April 2019 levels when BTC was $4,900.
Shows most small market cap cryptos have essentially nosedived in Oct-Nov.
Ether the Exception to the Rule?In response to Young’s assertion about some of the smaller cap, another analyst, Andrew Kang, pointed out how things on the Ethereum blockchain and its associated ERC20 tokens could be the exception to this rule.
Kang showed that: “having almost flipped ETH twice previously, the cumulative market cap of ERC20s is looking like it is finally on pace to surpass the market cap of ETH itself if the current price trends of altcoins vs. ETH continue.” The suggestion being outlined here is that Ethereum’s own market cap is falling, but the cumulation of all the ERC20 tokens is rising, or not falling as quickly at Ether. There could be several reasons for this, including more ERC20 tokens being created on the blockchain, or even increasing the standard of tokens resulting in higher-value contributions to the overall ERC20 market cap.
Ether has actually been hit harder than most ERC20 altcoins the past 2 months with the average trading up in ETH terms.— Andrew Kang (@Rewkang) November 25, 2019
Most of the total market cap decline comes from large caps selling off hard imo https://t.co/CQNecXcraF
Images are courtesy of Shutterstock, Twitter.
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