Nearly five years after the 2021 altcoin boom, the crypto landscape looks vastly different. According to CoinMarketCap data, almost two-thirds of the top 100 altcoins from November 2021 have lost more than 90% of their value. Nearly half are down more than 95%, and 70 hit their lowest price this year. Meanwhile, Bitcoin has risen about 30% over the same period.
Not all altcoins fared poorly. Seven of the top 100 from 2021 are worth more today, including Zcash, up 646%, and TRON, up 212%. BNB also showed resilience, with its price higher due to token burns cutting supply by 21%, even as its market cap fell 4%.
Experts point to demand, not just supply, as the key factor in the declines. Alice Liu, head of research at CoinMarketCap, noted that the median losing coin issued about 50% more tokens since 2021 while the market cut its valuation by 95%. Jim Ferraioli, director of digital currencies research at the Schwab Center for Financial Research, emphasized that strong teams and useful technology don’t guarantee token value.
The altcoin market has also evolved, with 39 of today’s top 100 not even listed in November 2021. Investors now need to scrutinize whether network growth translates into token value, considering factors like fee distribution, supply control, and demand mechanisms.