Recently, there has been talk that a new altcoin season is on the doorstep for Bitcoin forks such as XRP (XRP), Litecoin (LTC), Stellar (XLM) and Bitcoin Cash (BCH) and Bitcoin Satoshi Vision (BSV). Ryan Selkis, CEO of cryptocurrency research and analysis firm Messari, shared his views and warned investors for altcoins as a whole, as well as the most talked about altcoins of recent days.
“Bitcoin’s Dominance Is Increasing”
Commenting on Messari’s latest newsletter, Selkis said that Bitcoin’s smart contract platform tokens, DeFi tokens, stablecoins, and other alternative blockchain projects, excluding Bitcoin’s “store of real value / p2p payment cryptocurrency” divisions, it has increased from less than 60% in early January 2018 to almost 90% today.
The Messari manager also touched on why such currencies still exist and how they still manage to hold billions of dollars in market value:
Why won’t these things die? The answer may be that they are “mostly dead”. Crypto assets are not bankrupt, so there is also a tendency for cryptocurrencies to drift into the abyss over time and disappear spectacularly. Do you remember Peercoin, Namecoin and Primecoin at the bull run in late 2013? Similar disruptions have occurred in the past market cycle. Unnecessary forks like Bitcoin Gold and Bitcoin Diamond have disappeared. Operating cryptocurrencies such as XRP (XRP), Stellar (XLM), and Bitcoin Cash (BCH) are also in decline. Many of them lost more than 90% of their value and performed 3-4 times worse than Bitcoin.
“I have doubts”
Selkis warned investors to avoid “Primecoin of this cycle” and said:
Perhaps altcoin holders are waiting for this dominance trend line to break and speculate that the alcoin season will return. I have doubts about this. I think it is equally likely that a slow and inevitable decline in monetary assets will continue without any real distinguishing features.
