Tuesday, June 6

Despite the drop, Bitcoin is stronger than ever, shitcoins start to evaporate

Big Bitcoin corrections are nothing new, so far this is already the sixth biggest in its history. Despite the losses, this move is great for cleaning up the market, after all, coins like Bitcoin and Ethereum will not disappear, since many shitcoins will disappear as quickly as they appeared.

With thirteen years of history, adopted by millions of individuals and even a country, despite the recent 50% drop Bitcoin is stronger than ever. In addition to a 13-year history, today it is one of the most talked about topics in the world.

The same goes for Ethereum which can surf all fads, DAOs, stablecoins, ICOs, NFTs and P2E games. Even with its scalability issues, it will likely be the network of choice for new future use cases.

Bitcoin and Ethereum will not disappear

Many believe that Bitcoin has already proven itself after its thirteen years without suffering any hacks and, in this way, gaining more and more adoption both individual and institutional. In this way, the recent drop does not mean that it will disappear.

Ethereum, despite being newer, may already have the same verdict. After all, even the director of Microsoft has claimed that Ethereum is the next Appstore. That is, despite its scalability issues, it manages to be the preferred blockchain for most projects.

Thus, both Bitcoin, which functions as a digital gold and/or hard currency, and Ethereum, which functions as a global supercomputer, will remain very much alive despite their respective drops of 52% and 55%.

Shitcoins are starting to evaporate

Bitcoin’s fall has an upside, causing both shitcoins and their investors to disappear (or learn something). Meme coins, NFT games and pyramid-like DeFi projects will be the first to be affected.

According to data from CoinGecko, dozens of them already show losses greater than 90% in the last 30 days. Some of them have very similar names like CryptoGuards, CryptoGodz, CryptoPlanes, CryptoShips and CryptoCars, showing the lack of creativity in the market.

Coins with the biggest losses in the last 30 days. Source: CoinGecko

In addition to the giant losses, the point is that these coins are unlikely to rise again, unlike stronger projects like Bitcoin (BTC) and Ethereum (ETH). The same happened in other cycles that ended up killing even projects that were in the top 10.

Finally, while investors wait for signals about the best time to buy and accumulate more BTC, shitcoins are already traumatizing newer investors.

In addition, this will also separate projects in other sectors, after all there are NFT and DeFi game projects that are good, however those that are just pyramids in disguise will disappear.