Top 10 crypto asset history
Current market conditions are significantly volatile so, I thought it would be good to look back at the top 10 cryptocurrencies in previous bull markets.
Data source: Coinmarketcap.com
The above image shows the top 10 cryptocurrencies around the bull market of 2014. The names of the top 10 are not house-hold and many do not exist today. Bitcoin, Litecoin and XRP may be cryptocurrencies that sound familiar.
Take note of the price for the top 3. Today BTC sits at roughly $20k, Litecoin at $48 and XRP at $0.30. Bitcoin has been the strongest performer of the three but if you’d have bought any of the top 3 in 2014 you would be in profit today.
Data source: Coinmarketcap.com
Above is a snapshot from around the time of the 2017/2018 bull market. Ethereum was created in 2015 quickly rising to the number 2 position. Litcoin slips out of the top 3 even though the price had roughly 8x what it was in 2014. XRP was hanging on to the top 3 as Bitcoin cash emerged. Cardano, and privacy coins Dash and Monero differentiated themselves from the others.
Bitcoins price, market cap and circulating supply have all increased. It is worth comparing Bitcoins circulating supply compared to the other cryptocurrencies. There will only ever be 21 million BTC created. There are 100 million satoshi’s in each Bitcoin making BTC highly divisible. The other cryptocurrencies have a higher circulating supply’s or they haven’t been fully released yet. Bitcoin is scarce therefore when demand rises so does the price.
Data source: Coinmarketcap.com
Above is a snapshot of the bull market top 10 in April 2021. Compared to 2014 there are 3 crypto’s that remain in the top 10 - Bitcoin, XRP and Litecoin. Compared to 2017 there are 4 crypto’s that remained in the top 10 - Bitcoin, XRP, Litcoin and Cardano. I am not saying that the others have ceased existing but by looking back we can reasonably set our expectations for the future.
Data source: Coinmarketcap.com - June 12 2022.
June 2022 compared to April 2021 there are 5 cryptocurrencies that remain in the top 10. Bitcoin, Ethereum, XRP, Cardano (ADA)and Binance Coin (BNB). The emergence of Stablecoins such as USDT, USD Coin (USDC) and Binance USD is undeniable.
Many of the top 10 from 2021 and 2017 bull markets still exist but they are a lot further down the pecking order than at the peak of a bull run. As an example Litecoin is currently at number 18 and I do not anticipate seeing LTC back in the top 10. Sorry if you own it but LTC value against BTC has only ever declined over time meaning you would be better off just owning BTC.
What are some take-aways:
Do not approach cryptocurrency investments as a lottery quick win. Think and plan long-term.
Only invest what you can afford to loose.
The top 10 in the next few years could/probably will change.
Bitcoin (BTC), Ethereum (ETH), XRP and Cardano (ADA) are the longest standing top 10 cryptos. Take from that what you will. All have varying degrees of ROI success.
With the emergence of Stablecoins the landscape is changing.
BTC over the long-term moves up even though it experiences volatility as a new asset class.
BTC is the safest digital asset to hold surviving and thriving through every bull market.