Of those cryptocurrencies that existed in 2017, only LINK and Binance Coin are less than 40% of their maximum level. Coin Metrics indicates that the distance from highs in altcoins is a sign of a healthy market.
Due to its recent price boost above USD 19,000, Bitcoin is the only major cryptocurrency close to its all-time high (ATH), just 3% from reaching it.
Crypto analytic firm Coin Metrics recently published a report on the state of the cryptocurrency ecosystem. They highlight that, while Bitcoin is returning to levels not seen since 2017, “only a handful of cryptocurrencies are close to or have recently exceeded their all-time high.”
The report also highlights the prices of Chainlink (LINK) and Binance Coin (BNB), the cryptocurrency that the largest exchange in the ecosystem by volume launched.
LINK, which emerged in September 2017 through an initial coin offering (ICO), reached its first peak during the bullish run late in that year and early in the next when cryptocurrencies reached their respective all-time highs.
It has since remained on the rise and reached its current all-time high, just under USD 20 per unit, last August. Even though it is currently 35% below that price, it is the third major cryptocurrency closest to its all-time high. It is only behind Bitcoin and BNB, states Coin Metrics.
Something similar happens about the Binance cryptocurrency. BNB emerged in mid-2017 and reached a price peak above USD 22 in January of the following year. In 2019, it broke that level again and, in June of that year, it established its current all-time high of USD 39.5.
BNB is currently hovering around USD 30, about 24% below its all-time high. It is still far from breaking its all-time level, but the rest of the major cryptocurrencies have a much longer way to go to break their respective records.
Polkadot (DOT), a cryptocurrency with only a few months of existence, is also less than 30% from its all-time high. It has been able to do what the other cryptocurrencies mentioned in the report have not, despite their long history.
A Healthy Market Looks for Cryptocurrencies with Real Value
According to the Coin Metrics report, the rest of the major cryptocurrencies by market capitalization are very far from reaching their all-time highs. This corroborates a behavior in which altcoins lose value against Bitcoin.
Some of those cryptocurrencies were part of the bullish run of 2017 but are currently more than 80% from their all-time highs. The most prominent among them are Bitcoin Cash (BCH), Cardano (ADA), Ripple (XRP), and EOS. Others, like Litecoin (LTC), Ether (ETH), and Monero (XMR), are between 59% and 78% of their all-time price.
Coin Metrics analysts consider that this scenario is not necessarily negative. In their opinion, the situation proves that the positioning process in the cryptocurrency ecosystem is healthy.
“The fact that some assets are still well below their peak indicates that the market, at this stage of the cycle, is still discerning which projects to divert capital to,” the report says.
The analysts add that the market has also evolved over the past three years, allowing for much easier short-term exposure to a variety of assets, especially outside of Bitcoin and Ethereum. This represents a healthy market with no obvious excesses.
By Alexander Salazar
