Altcoins have followed Bitcoins suit as they continue to tumble amid the market meltdown. Last week, after dropping to its lowest price since December 2020, Bitcoin is now back above the $20,000 level.
At the time of writing, the majority of the top 10 coins are trading in green with Ethereum, BNB, and Cardano recording more than seven percent gains. Solana and Polkadot emerge as they record gains of more than 11 percent.
5% Crypto Projects to Survive?
Only a small number of cryptocurrencies, according to a well-known crypto analyst, will survive the bear market and rebound in the future years. According to the Altcoin Sherpa, a pseudonymous expert, just approximately 5% of altcoin projects will survive the present crypto winter.
Smart contract platform Solana, blockchain scaling solution Polygon (MATIC), and blockchain-based video game Axie Infinity (AXS) are among the projects that the analyst believes will outlast the competition.
In a bear market, using altcoins as a portfolio diversifier is almost always a bad idea. Everything will drop the same way – good projects, terrible projects, and so on. After BTC bottoms, he estimates that 5% of projects will make it out alive and rebound nicely for years.
Many projects, according to Sherpa, will vanish forever, therefore he’s only confident in trading Bitcoin and Ethereum for the time being. When it comes to Bitcoin, the analyst cautions that a breakdown of the $18,000 support level might trigger a new round of selling.
“Bad projects will continue to dump and die/stay dead forever. Good ones will stick around overall. I don’t really see many that I like and would rather just play BTC and ETH for now. If you want to buy stuff for long-term holds, I would focus on projects that’ll stay around…”