Is Crypto DEAD? The short answer is NO.
With the recent large drop in the crypto space you may be wondering is crypto dead or not. Well, fortunately there is a lot of data that shows us that cryptocurrencies whether it be bitcoin or any other small coins, are still alive and well. From amount of daily transactions to the dollar size of these transaction or even DeFi total value locked. Chances are whenever you’re reading this.
Crypto is probably as we speak still being used by millions of people around the world. I should also mention before we look into some data that crypto always has and has had boom-and-bust cycles. Like any financial markets, cryptos have bullish and bearish periods. Several times, bitcoin fell over 70% from it’s highs and yet it still recovered every single time to make new ones.
Bitcoin historical drops:
As can be seen on this historical chart with the previous performance of bitcoin, it is not unusual to have large drops or even daunting pullbacks. However, you will also notice that after such slow periods also known as crypto winters there are very big pumps higher. In fact, the funny things is Bitcoin itself, the biggest crypto out there has been called dead hundreds of times by major sources. Guess what, none of them were right. So, as long as Bitcoin is running transactions, which it never failed to do since it launched, it is not and will not be dead. To summarize, for Bitcoin, based on the past, the answer for is Crypto dead has always been no!
An important distinction is the difference between altcoins and Bitcoin or even Ethereum. Is crypto dead becomes more risky and dangerous here. Coins that have been around for a long time and have steadily made higher highs are more likely to recover, This is of course the case with BTC and ETH. However, when looking at smaller cryptos which are not bitcoin, often called altcoins, the likely hood of them disappearing into oblivion is much greater. Indeed, many smaller cryptocurrency coins have risen and fallen, many never recovering again. So, you might want to be more careful when dealing with these lower market cap coins.
Moreover, there are coins that use to be huge like LUNA that has now fallen into a pit. So, even bigger altcoins are not exempt from these risks, which is actually Bitcoin and Ethereum are special in that sense. They keep bouncing back from the lows time and time again. For certain altcoins, is crypto dead can be yes depend on the strength, size and historical patters of these specific cryptocurrencies.
Ethereum being a network that can run decentralized apps, has a certain amount of total value locked in it. This number has steadily grown over time due to the ever growing amount of DeFi platforms that run on ETH. Because of this, it is hard for Ethereum to ever be dead as long as the network is up and running. People have million dollar loans on decentralized websites like AAVE. There is a need for ETH to always be transacted and useful. This makes it almost impossible for ETH to be in a standstill.
For more info below, I added a graph of the TVL locked on Ethereum. Similarly, as with Bitcoin for Ether the answer is the same when looking at it. Is crypto dead? no again.
When asking yourself the question of is crypto dead right now? just look back at how many people have asked that same exact question. Most likely, in times of fear and doubt. What we find is that every single indicator has shown that crypto as long as it’s here cannot be dead. In fact, due to it’s very nature as long as it has users and transactions it’s not dead. We must however not confuse this with natural ups and downs as with any other market and of course the large amount of random cryptocurrencies that do actually never recover from large drops. So, when paying attention to this fundamental analysis is key.
With well informed decision and due diligence. We have the best odds of being on the winning side. Which, has previously been to just always HODL your crypto, at least for Bitcoin that is. So, remember this post next time a friend asks you is crypto dead? it might just be the next big buying opportunity of a lifetime.