Data released by crypto market data aggregator Messari shows that 83% of crypto assets, which hit all-time highs in January 2018, are still down at least 90%.
The data was spotted by CMT Digital analyst Matt Casto, who tweeted data that ranks the average return on investment (ROI) of crypto assets by the year they hit record highs.
Holding assets that got good marks +3 years ago turns out to be a massive loss of opportunity cost to deploy capital.
There’s a reason 83% of assets that hit a high price in January 2018 are trading + 90% below their ATHs.
ATH / Cycle Low data comes from the @ MessariCrypto-API pic.twitter.com/Kfzfq69ZMp
– Matt Casto (@mcasto_) January 21, 2021
The dataset included 410 assets that saw record prices in 2017 or later, with the 2018’s 157 star coins having the worst performance, averaging -90.71% since the previous ATH.
The top 2017 cryptos have since crashed an average of 82%, while the 2019 crop has declined 72% and the standout 2020 stats have decreased 53%.
The data could help support the concept of the “big re-evaluation” whereby capital that once flowed into the “ghost chain” layers that dominated the sector in 2017 and 2018 is now diverted to the nascent DeFi sector.
For some, the concept is even a trading strategy, with dHedge pool manager Wangarian describing his strategy as a longing for “tokens that generate direct value creation (DeFi)” while he describes “dogs ** t L1s that have no added value at all “Shorts.
Despite the poor performance of many of yesterday’s altcoins compared to their record highs, many older altcoins have still seen huge percentage gains since bottoming out.
Since Cardano (ADA) noted local lows during the Black Thursday crash in March 2020, it has risen nearly 1,700%, Zilliqa (ZIL) 2,670% and Decred (DCR) 14,130% from their respective price floors.