How Much Would You Have if You Invested $100 in the Top Cryptocurrencies at Exchange Listing?
Last year’s bear market has seen many in the cryptocurrency space see their portfolios turn red. It’s interesting however, to see how the long term ‘hodlers’ are still sitting on exceptional gains.
DataLight analyzed how much some of the top cryptocurrencies in the space have risen in price since they were first listed on cryptocurrency exchanges. It’s instructive to remember that despite the current bear market — a $100 investment made back in 2010 in Bitcoin would now be worth $1.3 million.
The case of Bitcoin is different than that of other cryptocurrencies. For one, it’s the flagship cryptocurrency and has a clear ‘first mover’ advantage. Its now established presence in the market has seen cryptocurrency investors return to bitcoin when during market downturns — as seen by the growth of its market share of the ecosystem last year.
The next cryptocurrency to be created was Litecoin (LTC). It’s often referred to as the ‘silver to bitcoin’s gold.’ A $100 investment would now be worth over $1,300. Other cryptocurrencies with different features were created shortly after – including XRP, XLM, and XMR – and their growth has outpaced that of LTC.
Ethereum broke new ground as the first initial coin offering (ICO). Despite major security incidents such as the DAO hack, its value has kept on rising and firmly established itself the dominant platform on which to launch ICOs. Even after losing over 95% of its value last year, investors who put in $100 into ETH when it was listed on exchanges – would have over $68,000 today.
Dash has been the third best investment so far, with $100 turning into $39,000 in about six years. The cryptocurrency has been making headlines for its attempts to increase adoption in regions like Venezuela. Its fast, low cost and private transactions have proved popular in the markets.
Binance Coin (BNB) stands out for its impressively fast growth. The token was launched via an ICO to help fund the launch of leading cryptocurrency exchange Binance, and is used to give traders a discount on the platform’s fees.
The upcoming launch of Binance’s decentralized exchange (DEX) has seen analysts ponder various new uses for the token, which will be used as the trading platform’s native currency.
Three cryptocurrencies in the chart would have given investors a negative ROI after being listed on exchanges. These cryptocurrencies were all launched relatively recently, and so were heavily influenced by the bear market.
Bitcoin Cash (BCH) was created in August of 2017 through a hard fork on the Bitcoin blockchain, after a years-long scaling debate. Its negative performance may be associated with the fact it was launched near the end of 2017’s bull run. BCH has since hard forked again into BSV and BCH, which has further damaged the price.
Bitcoin Satoshi’s Vision
Bitcoin Satoshi’s Vision (BSV), was launched in November of last year after splitting from Bitcoin Cash (BCH) in a tense and ultimately damaging ‘hash war’.
Finally there is IOTA, which took off as soon as it was listed on exchanges.
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Investing $100 in the cryptocurrency would have returned a negative yield because of its fast rise, and the date of its launch – 2017. When it appeared in the market, its market capitalization quickly surged to over $1 billion, although most people weren’t yet familiar with IOTA or its ‘Tangle’ system.
Overall a clear trend emerges; the top cryptocurrencies that would have yielded investors a negative ROI were launched fairly recently and haven’t yet stood the test of time.
Cryptocurrencies that have been on the market for a while and have actual use cases have seen their prices rise.
Of course, we’re looking at the top cryptocurrencies here. With over 2,000 cryptos on the market, there’s much to be said about the dozens of tokens that simply fell into oblivion.