Birthday of the bearish cryptomarket – the bubble popped one year ago

Birthday of the bearish cryptomarket – the bubble popped one year ago
Jan 9, 2019 by Rico Wise

The digital currency market capitalization hit 835.7 billion dollars on January 7, 2018, theoretically being worth more than Facebook and Twitter combined, including the narrow money supplies of all but 8 countries.

A year later, nevertheless, the digital currency market capitalization sits at only 126.3 billion dollars, accounting for nearly 84% drop. What is more interesting is that the number of digital currency-related startups has grown to 2,086 projects.

It is worth noting that the digital currency high took place a few weeks subsequent to the market’s dominant currency’s decline. The implementation of BTC futures in the middle of December had probably pierced the BTC price bubbly, as the popular digital asset almost reached 20,000 USD just a couple of days subsequent to the start of futures trading on CBOE and CME exchanges.

Still, the capital did not leave the cryptomarkets, and if it did – not from the get-go, as the altcoin bubble kept on inflating at a confident pace over the course of late December and the first week of 2018.

The bubble was immensely led by the value dynamics of XRP, which turned into a foster child for retail-led speculation even when its supporters tried to sell it as the suit-and-tie digital currency created for banking institutions and other financial organizations.

Ripple had most popularity in the marketplace of South Korea, where the so-called Kimchi Premium led the coin’s worldwide average to the highs of 3.84 USD. On Monday morning, the XRP value was sitting at 0.366 USD, accounting for a year drop if over 90%.

At its high, XRP, which back then replaced ETH as the 2nd most dominant digital currency after BTC, had a market capitalization of approximately 149 billion USD, which is over 13 billion dollars more than the entire digital currency market capitalization today.

Surely, XRP was not the only digital currency to suffer a 90% drop from its early 2018 high, among other digital currencies and coins are BCH (96%), LTC (90%), TRX (92%), ADA (96%), XMR (90%), DASH (95%), NEM (97%), NEO (96%, and ZEC (94%).