Analysis: Cryptocurrency saw $380 billion wiped out in a single week, with about $131 billion coming from altcoins

PANews reported on October 14th that according to data from 10x Research, of the $380 billion in market capitalization wiped out during this crypto market crash, approximately $131 billion came from altcoins. This crash has raised questions about the future of the altcoin ecosystem. Traders and market makers see the structural support for these tokens eroding, with buyers shrinking and risk aversion rising. The unprecedented speed and scale of this event may mark a decisive break from the frenzied era of 1,000% surges without reason.

Morten Christensen, a trader who runs AirdropAlert.com, said: "The problem with altcoins is that they can indeed rise more, but they can also fall 50% in a day or 90% in a week. At the end of this cycle, when the possibility of an end is becoming increasingly likely, I will not bet my portfolio on this game." John Todaro, an analyst at Needham & Co., said: "These assets in particular have taken on huge risks, as we saw last weekend, but have generally underperformed large-cap crypto assets, stocks and gold. In short, the risk is significantly higher for less reward." Given the scale of the losses suffered by the day trading community, Wintermute CEO Evgeny Gaevoy was blunt: "The altcoin market will shrink."