Altcoins with $1 Billion Market Cap Now a Rarity
During boom times, even less significant startups with vaporware tokens easily reached $1 billion valuations, but now, only a handful of coins breaks this threshold.
In 2019, altcoins went through another mass purge. Only a handful of assets now pass the $1 billion market cap barrier, which was much easier during boom times. Multiple altcoins managed to pass that tier, well into the top 50 of coins and tokens. Even the KIN token, now having a market cap of just $7 million, reached a valuation within a shouting distance of $1 billion.
Now, the list extends to the top 13 coins, with Cardano (ADA) just above the threshold, with a $1.04 billion valuation.
The biggest curiosity within the top 10 is Tether (USDT), which has now “flippened” Bitcoin Cash (BCH) to climb to position four. The reason for this was a series of new USDT minting events, which raised the supply to 4,108,044,456 coins in the past day. USDT peaked last week with a supply above 4.16 billion coins.
The altcoin market has shrank to a handful of assets, while coins that were previously hot, are now largely forgotten, once again with thinned-out volumes.
A handful of newcomers is struggling to pass the $1 billion mark, including Unus Sed Leo (LEO). But for most of the others, lack of interest means a mass altcoin season may never arrive again.
As for the top coins, most of them have lasted due to receiving significant direct activity from USDT pairings. This has also led to a handful of coins having an independent price discovery mechanism, avoiding the usual pattern of crashing when BTC rose.
What is even more curious, some USDT inflows bypass the top coins, and go directly to stablecoins like Paxos Standard and TrueUSD. Currently, Ethereum (ETH), Litecoin (LTC), and XRP receive the most direct inflows.
Other high market cap coins are in the $1 billion club mostly because of their extremely high supply. But even that has not lifted the skepticism, as in the case of ADA, which is seen as a vaporware project with almost no real transactions. In the case of TRON, despite the high network activity, there is still skepticism about the use cases, as most transactions are based on the activity in gambling distributed apps (dApps).