Coin Metrics: lack of new altcoin records is a sign of market maturity

Bitcoin is consolidating on the approach of a new all-time high, but the vast majority of popular altcoins have left price records far behind. Coin Metrics analysts see this as a healthy state of the cryptocurrency market, with no signs Bitcoin Profit of a bubble.
Experts have presented a chart showing XRP, Bitcoin Cash, Cardano and EOS falling 85-93% from ATH. Ethereum’s price is 41% lower relative to its early 2018 peaks. Along with bitcoin, only Chainlink and Binance Coin have recently updated records.

According to experts, this divergence suggests that market participants have become more aware of onchain metrics. Investors are concentrating buying activity in assets with stronger fundamentals.

Analysts believe that the current situation differs from three years ago, when market performance was much lower. It has been boosted in particular by the emergence of short positions in cryptocurrencies other than bitcoin and Ethereum.

„And while bubbles can ultimately have disruptive consequences, they are very effective in attracting newcomers to the industry, as well as encouraging the creation of critical infrastructure to scale the industry,“ the researchers shared their thoughts.

Many investors, who previously faced large losses, never returned to the market. This is what analysts attribute to the current „muted“ retail demand.

Earlier, Coin Metrics co-founder Nick Carter attributed bitcoin’s strong price growth to fiat currency inflation and the development of institutional infrastructure.