Bull’s tail junk coins run rampant?64% of survey respondents think it’s very similar to 2017

Cryptocurrencies have seen a major bull market, with the price of bitcoin having doubled compared to the beginning of the year and rising nearly tenfold compared to the same period last year, and other cryptocurrencies also performing well.

Bull's tail junk coins run rampant?64% of survey respondents think it's very similar to 2017

In the early days of the bull market, new coins are often packaged, but in the later stages, coin issuers are often too lazy to package them and just issue them for the sake of it. And investing in all sorts of outrageous junk projects can often pay off even more.

This year, cryptocurrencies have seen a bull market, with bitcoin prices doubling compared to the beginning of the year and rising nearly tenfold compared to the same period last year, while other cryptocurrencies have also performed well. In addition, the recent emerging projects represented by various types of zoo and MEME coins are refreshing people’s perception with their rise, reminiscent of the great bull market of cryptocurrencies in 2017. Interestingly, a project called “Dark Dog Coin” also emerged in 2017, claiming a one-year increase of 10,416 times.

In a survey conducted by Wu said blockchain on Weibo, 2,667 people participated, 64% thought it was similar to 2017-18, only 14% thought it was not, while others entered the circle after 17 years and did not experience 17-18 years. at the end of 2017 and the beginning of 2018, the bull market came to its highest point, and then started to fall. The current situation, in our opinion, has shown similarities to the end of the last bull market in the following ways.

Bitcoin’s miner fees

According to [data from] The Block (1), the average miner’s fee for the Bitcoin network peaked on December 27, 2017 during the last bull market, when a miner’s fee of up to $47.75 per transfer was required, and that record was broken on April 23 of this year, when the average miner’s fee for the Bitcoin network reached $53.17 on that day (with some coincidental due to a power outage due to Northwest security checks).

The spike in miner fees is indicative of the enthusiasm for on-chain transfers due to bitcoin’s block size limitations, and shows how frantic bullish users are, as most are already profitable and thus don’t care about the high transfer fees.

A similar thing happened to the ethereum network, where the last bull market saw ethereum’s miner fees reach an all-time high of $3 per transfer on January 14, 2018, while this bull market saw the average miner fee on the ethereum network reach $24.7 on February 25 as Defi was on fire, a much higher increase than the bitcoin network.

Cottage Coins Steal Bitcoin’s Halo

After the bull market began, users often chose to speculate on cottage coins that rose even more, and in the process, the prices of some previously half-dead cottage coins began to soar. Very interestingly, in December 2017, the price of a coin called “Dark Dogcoin” (XVG) also [shot up 800%] in one week(2), other early cottage coins like DASH also performed well, and some emerging projects like Cardano, IOTA, etc. also Some emerging projects such as Cardano, IOTA, etc. also made a big splash. In this bull market, besides early cottage coins such as doge and etc, some emerging projects such as Boka entered the top 10 in market cap and BNB even entered the top 3 in market cap.

The result of the cottage performance is that BTC’s market cap is being eroded step by step. In the last bull market, Bitcoin’s market cap share in cryptocurrencies fell to an all-time low of 37.64% on January 1, 2018, and subsequently kicked off a bear market. Currently, bitcoin’s market cap share in cryptocurrencies is also stepping down, currently at 45.16%, and it is foreseeable that bitcoin’s market cap share will go further down after the listing of popular projects like dfinity. (Data source tradingview)

Junk projects lead to bull and bear switches

Early in a bull market, new coins are often packaged, while later in the process, issuers often don’t bother with packaging and simply issue coins for the sake of issuing them.

And investing in all sorts of outlandish junk projects can often yield greater returns, rendering research and analysis meaningless, and resulting in increasingly ridiculous coin names as time goes on. For example, in the last bull market in 2017, there were successive zodiac coins and even MLGB coins. And in this bull market, first by the Musk shouting order dog coin started, then SHIB came out quickly market value into the top 20, the rest of a series of animal coins at home and abroad are coming out, and the value has also risen hundreds of times in a short period of time.

Of course, the massive institutional entry, Defi, NFT, etc. are all positive features not seen in the last bull market, and it is still too early for the bull market to bottom out. But with all the craziness going on in the cryptocurrency world today, it is reminiscent of the last bull market.

[2]:https://www.forbes.com/sites/jessedamiani/2017/12/19/crypto-watch-verge-xvg-price-climbs-800-in-a-week-what-is-xvg-and-why-is- it-growing-so-fast/

[3]:https://www.tradingview.com/markets/cryptocurrencies/global-charts/

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bulls-tail-junk-coins-run-rampant64-of-survey-respondents-think-its-very-similar-to-2017/
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