Data from cryptocurrency analysis firm Messari shows that many projects that previously enjoyed market success are still far from their historic highs. Matt Casto, an analyst at CMT Digital, tweeted a selection of 410 crypto activities that peaked in 2017 or later, showing an average loss of 65.71% across all projects combined.

Of the 410 assets analyzed, 157 assets reached a record high in 2018, having lost an average of 90.71% in value since then. Another 67 assets reached record highs in 2019 and have lost 73.33% since then. In contrast, projects that reached full-time highs in 2021 lost only 13.82% of their value.

Casto said owning assets that have reached record levels in the past three years is a “very missed opportunity for investment”. This data shows how the market maintains the cycles of hype and speculates on currencies that often have little to add to the crypto world as a whole.

While the current cryptocurrency rally has also affected many of these currencies, the data shows that they are still far from their highs all the time. Meanwhile, tokens in the DeFi ecosystem are constantly breaking their historical highs, showing that for many of these coins, there are better days to come, and that’s because of zombies.

Great revaluation
Although Bitcoin (BTC), the oldest cryptocurrency, has continued to show growth over the years, most other “old” currencies have not shown such a trend. Messaris data also promotes the concept of “significant surplus value”, which states that many of the best altcoins in the market will be replaced by new sectors such as decentralized finance.

Asked about a good revaluation, Ryan Watkins, senior analyst at Missari, told Cointelegraph that it was “definitely not just propaganda” but “real fundamentals, strong growth, and a strong product fit with the market.”

These once ubiquitous altcoins have become known as “zombie ventures” and are usually Tier 1 blockchain protocols, many of which compete directly with Bitcoin and Ethereum, or as a form of currency or platform for issuing assets, smart contracts, and more. … as both BTC and Ether (ETH) are still relevant, many of these projects are now considered outdated or unsuccessful.

With regards to DeFi, the ability to generate revenue from cryptocurrencies and accumulated currencies, combined with opportunities for decentralized and superior financial services, make it one of the most exciting (and risky) investment options in 2021. Consequently, the capital that has previously been pumped into assets . During the alternative seasons 2017 and 2018 it will now be redirected to the promising DeFi sector, much of which is hosted on the Ethereum network.

Why do projects lose their relevance?
While many of the zombie projects mentioned above started with capabilities, they were often launched with a single function or purpose: privacy or speed-focused coins, or projects that provided specific services such as file sharing or asset release.

As Ethereum remains a niche that developers use to create new features in cryptography, many of these features or goals have been integrated into the Ethereum ecosystem itself, leaving many Level 1 projects obsolete. The same can be said of Bitcoin, whose developers continue to strive to make faster, anonymous payments a reality through projects like Lightning Network and others.

Over the years, Ethereum has had what is called a “network effect”, when all the services users need are in one place. Hence, it is more appropriate to stay on the same network and only use one cryptocurrency to pay for these services, the most popular of which have become the DeFi income generating protocols like Yearn.finance and Compound.

It is also worth noting that many of the currencies that reached record levels in 2018 were competitors to Bitcoin and Ethereum. The two leading cryptocurrencies have proven to be resistant to the test of time. Bitcoin’s superior security has proven itself over its competitors, who are targeted by 51% of the networks.

On the one hand, the hype surrounding the original coin offering also played a major role in modernizing these projects, as the cryptocurrency bubble in 2017 and 2018 pushed the prices of these tokens to unrealistic levels.

With the passing of the injecting drug addict, the cryptocurrency community seems to have lost their appetite for these projects, and some of them are almost forgotten. “The startup fails at a very high speed, so it is natural for many projects not to recover from the 2018 wave,” Ilya Abugov, consultant to the DApp DappRadar statistical complex, told Cointelegraph.

Source: CoinTelegraph

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