Top 50 Altcoins: Only 9 Outperformed Bitcoin (BTC)

▲ Hyperliquid (HYPE), Chainlink (LINK), Bittensor (TAO), Uniswap (UNI), Solana (SOL), XRP (XRP), Ethereum (ETH), Altcoin / AI Generated Image

Attempts to surpass market returns through altcoin investments have encountered extreme difficulty in selection. While Bitcoin (BTC) underwent a correction from its all-time high of $126,000, only 9 of the top 50 altcoins managed to outperform Bitcoin's returns.

According to crypto media outlet Cryptopotato on September 27 (local time), a survey of Glassnode on-chain analysis platform data revealed that 41 assets, accounting for 82% of the top 50 altcoins by market capitalization, recorded lower returns compared to Bitcoin when Bitcoin hit its previous high. Investors expect excess returns beyond Bitcoin in exchange for higher volatility, but in reality, they incurred opportunity costs, achieving lower performance than simply holding the leading cryptocurrency, according to the analysis.

Zcash (ZEC) was found to be the winner with the most overwhelming increase relative to Bitcoin. Zcash, a privacy-focused cryptocurrency, showed an approximate 14.5-fold increase compared to Bitcoin, securing the undisputed first place. Hyperliquid (HYPE) followed, achieving about 2.9 times Bitcoin's returns, while Monero (XMR) recorded 2.6 times, and NEAR Protocol (NEAR) recorded 2.1 times. Only a few projects, including Uniswap (UNI), TRON (TRX), UNUS SED LEO (LEO), and Bittensor (TAO), made it onto the list of those that surpassed Bitcoin's performance.

The results of this survey reveal the flip side of the widespread altcoin bull market expectations. It points out that there is a huge gap between the theoretical possibility that some altcoins can generate explosive profits and the actual investment ability to accurately pick the few winners in advance. While not outperforming Bitcoin doesn't necessarily mean these altcoins incurred losses in dollar terms, the opportunity cost of capital allocation incurred by increasing exposure to risky assets is considered a painful outcome.

However, recent short-term on-chain trends also show some signs of an altcoin comeback. Over the past week, more than 72% of the altcoins tracked by Glassnode surpassed Bitcoin's returns, significantly exceeding the 39% recorded at the August peak. The modest increase in perpetual futures open interest in the derivatives market also confirms that this rebound is not due to excessive leverage, raising attention to whether the warmth, which was limited to a few assets, can spread across the entire market.

[Article Key Summary]

-Glassnode analysis showed that after Bitcoin's previous high, only 9 out of the top 50 altcoins outperformed Bitcoin's returns.

-Zcash achieved the highest performance, rising 14.5 times compared to Bitcoin, followed by Hyperliquid, Monero, and NEAR Protocol.

-In the past week, 72% of altcoins have shown a rebound, outperforming Bitcoin, but distinguishing the gems from the dross remains a harsh challenge.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*