Jamie Coutts, the chief cryptocurrency analyst at macro research firm Real Vision, pointed out that smaller market cap crypto assets have been under pressure since Bitcoin (BTC) hit a new high in March this year. He believes that when the market stabilizes, there may be “some opportunities” for altcoins.
In charts shared by Coutts on Friday the 14th, it shows that in the past 3 months, the top 200 cryptocurrencies by equal-weighted index (not considering market cap, giving each currency the same weight) have dropped by over 30% compared to the market cap-weighted index. This indicates that smaller market cap cryptocurrencies have performed weaker compared to the dominant large market cap cryptocurrencies.
Coutts also shared the returns of several cryptocurrency sectors in the last three months, with metaverse-related tokens having the lowest return at -44.13%, followed by infrastructure sector at -43.28%. Decentralized finance (DeFi), smart contract platforms, and digital currency sectors 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 declined by 9% and 14% respectively during the same period (with maximum declines of around 23% and 32%).
In conclusion, Coutts stated that:
Data source
