Jamie Coutts, Chief Cryptocurrency Analyst at macro research firm Real Vision, pointed out that smaller market cap crypto assets have been under pressure since Bitcoin (BTC) reached a new high in March this year. He believes that when the market stabilizes, there may be “some opportunities” for altcoins.
According to charts shared by Coutts on Friday the 14th, in the past 3 months, the top 200 cryptocurrencies by equal-weighted index (not considering market cap, giving each currency equal weight) have dropped by over 30% compared to the market cap index, indicating weaker performance of small market cap cryptocurrencies compared to dominant large market cap cryptocurrencies.
Coutts also shared the returns of several cryptocurrency sectors in the past three months, with Metaverse-related tokens having the lowest return at -44.13%, followed by the infrastructure sector at -43.28%. Decentralized Finance (DeFi), smart contract platforms, and digital currencies have relatively lower declines, at -31.15%, -31.58%, and -31.59% respectively.
According to CoinGecko data, the native tokens SAND and MANA of the two major Metaverse platforms, The Sandbox and Decentraland, have dropped by over 50% from their highs in the past three months, while Bitcoin and Ethereum (ETH) have only dropped by 9% and 14% respectively during the same period (with maximum declines of approximately 23% and 32%).
Coutts concluded by saying:
Source: Jamie Coutts.