Most Altcoins Experience Rapid and Systemic Depreciation When Measured Against Bitcoin (BTC)

A recent study by Swan, a Bitcoin financial services company, has revealed that most alternative cryptocurrencies (altcoins) experience rapid and systemic depreciation

Most alternative cryptocurrencies (altcoins) rapidly and systematically depreciate when measured against Bitcoin (BTC), according to a recent study by Swan, a Bitcoin financial services company.

The findings, shared via X (formerly Twitter), highlight Bitcoin’s role as a more stable asset for capital preservation in the fluctuating cryptocurrency market.

Over five years, the median altcoin reached a -90% drawdown in just 10-20 months.

“The median altcoin reached a -90% drawdown in just 10–20 months. Among the top 300, only Monero took six years to depreciate by 90%.”

According to Swan’s data, the fastest collapsing tokens were Terra (LUNA1), Ontology Gas (ONG), and Bitgert (BRISE), all hitting the 90% drawdown mark in less than two months.

Meanwhile, larger and more established altcoins were not immune to this trend. For instance, Cardano (ADA) and XRP (XRP) took 36 months to depreciate 90% from their record peak.

Litecoin (LTC) experienced a gradual decline over 69 months, while Monero (XMR) saw the slowest drop, taking six years to reach a -90% drop.

However, even the best-performing altcoin in the period is still down by 43% compared to BTC.

“Bitcoin remains the benchmark for capital preservation. These assets don’t hedge Bitcoin — they bleed against it,” Swan added.

The analysis examined the performance of the top 300 altcoins. It focused on the time it takes for these assets to lose 90% of their value relative to Bitcoin after hitting their all-time highs (ATH).

The analysis also covers 45 altcoins that have not yet experienced the 90% decline. While they have not yet “collapsed,” the data suggests they are merely delaying their inevitable losses.

The average drawdown for these altcoins is 76% from their peak value.

“Even the best-performing altcoin in the period is still down by 43% compared to BTC. These assets don’t hedge Bitcoin — they bleed against it,” Swan added.

The firm also noted that long-term outperformance by altcoins is exceptionally rare, and survivorship bias has hidden the widespread decay across the broader market.

“With performance like this, it’s astonishing that altcoins continue to exist. Then again, humans love gambling,” Swan executive John Haar remarked.

Growing Saturation In The Altcoin Market

According to CoinMarketCap (CMC) data, over 1.8 million tokens have been created in just the past month. However, the vast majority of these tokens fail to deliver.

As BeInCrypto previously reported, 89% of tokens listed on Binance in 2025 are in the red.

Thus, newer altcoins’ value is driven more by short-term trading and hype rather than any lasting fundamentals.

In addition, this surge in the number of tokens has fragmented market liquidity. These factors have even delayed the long-anticipated “altcoin season.”

Yet, some analysts even argue that the traditional altcoin season may never return.

This shift is largely due to Bitcoin’s increasing dominance in the market, bolstered by institutional adoption and growing regulatory attention.

While Bitcoin solidifies its position as the dominant digital asset, the same cannot be said for altcoins, which struggle to maintain relevance and investor interest in the face of Bitcoin’s continued rise.