Following the fresh downturn recently noted in the cryptocurrency market, Xapo president Ted Rogers is of the opinion that most altcoins could be facing a ‘mass extinction’ event. This comes on the backdrop of a series of events like the altcoin sell-off spurred by Ethereum that has caused considerable panic in the crypto market.
Altcoins under threat
The cryptocurrency market seems to be going through a complete overhaul if the recent events of massive price drops are anything to go by. Ted Rogers, the Xapo president, in his recent tweet noted that a day of reckoning is nigh for the crypto world. In his prognostication, he reckons that an extinction level event is imminent and that this will see 90 percent of altcoins wiped out of the market.
Perfect opportunity to buy bitcoin
Rogers’ sentiments come at a time when the market is in panic mode following the recent massive drop in prices that saw most of the major players like Ethereum fall to their lowest value in 2018. Based on this development, Rogers believes that this is the right time for investors worth their salt to grab this chance and load up on bitcoin at a discount as he believes Bitcoin is poised to stand the test of time. In his tweet, Rogers noted,
“We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of @CoinMarketCap list will disappear eventually – might as well happen now,”
It would be noted that most altcoins hit an all-time high early January, even as the price of Bitcoin was drastically plummeting. However, as it stands, most cryptocurrencies have since dropped at least 80 percent from this record high, thus informing Rogers’ pessimistic forecast.
At the time of writing, analysis courtesy of OnChainFX indicated that that 5 of the 15 major crypto assets (Ripple/XRP, Cardano, Dash, Dentacoin, and Tron) had dropped more that 90 percent from their initial peaks. This has also seen 7 others – Ethereum, Bitcoin Cash, EOS, Litecoin, Tezos, Zcash and Monero decline at by at least 80 percent. This only leaves Ethereum Classic, Stellar Lumens and Bitcoin having declined less than 80 percent.
Interestingly, this altcoin downfall that peaked this week seems to put Bitcoin at an advantage. Since then, Bitcoin’s dominance in terms of the total share of the cryptocurrency market has surpassed the 50% mark for the first time this year. At the time of writing OnChainF put Bitcoin’s dominance at 56.04%.
Uncertain times ahead
It would be remembered that the altoin sell-off, largely spurred by Ethereum has caused a notable effect in the market. Based on this, all indications point to the fact that most blockchain startups are now at a point where they risk eating into whatever remains of their runway, especially considering most of them were funded through initial coin offerings (ICOs).
This is, obviously, not good news to the altcoin market as most ICO operators may now see the need to liquidate their holdings, most of which are under the dominance of Ethereum. This could even lead to a vicious circle where even more startups may decide to capitulate and sell as panic mode strikes.