In order for a crypto asset to be attractive to traders it needs to have liquidity. Without any daily volume there is nothing really to trade and recent findings indicate that 95% of altcoins fall into this category.
Dying Altcoins in The Thousands
Even with today’s minor dip, bitcoin dominance is still holding above 70% according to Tradingview.com. This means that, yet again, the altcoins are getting punished.
2019 has been a terrible year for altcoins, with the majority of them ending the year lower than they started it. Next year could be even worse for the majority of them as liquidity and volumes fall dramatically.
Earlier in the year, crypto analyst, Willy Woo, looked into the liquidity of altcoins and discovered that as many as 99% of them were illiquid.
Today, The Block’s research director, Larry Cermak, has continued with this; noting that most altcoins will go to zero not by price, but in terms of liquidity.
95% of cryptocurrencies currently have no liquidity and another 2% very little liquidity. Most of shitcoins…