Making money in a bull run might seem easy, but the true challenge lies in keeping what you’ve got. A fundamental aspect of successful investing in this extremely volatile world is knowing when to exit and calling it a day.
In this article, we will explore the projected valuations the top 100 cryptocurrencies could reach and offer insights into the market’s evolution. Hat tip to Metaquant.
Bull Market Predictions
How Did the Market Evolve from 2017 to 2024?
Looking back at history, we see that the cryptocurrency market witnessed a more than significant change from 2017 to 2024. While the top players remained the same, Ethereum and Bitcoin, the runner-ups changed constantly.
From the top 25 projects in 2017, only four remained in the top 100 by February 2021, with ten of those still there by February 2024. This was a reality check for many hardcore believers.
We understand that with each market cycle, a number of projects enter and fall out just as quickly from the Top 100. With new entrants coming in hot this cycle, a similar outcome is likely to follow nevertheless.
The Lindy Effect
The Lindy effect is a phenomenon where topics or ideas that appear earlier in a subject remain relevant for longer than those that appear later.
According to the Lindy effect, ideas or topics that have endured over time have a better chance of continuing to survive in the future. This will be a key factor in determining which projects will maintain their position—cough, Bitcoin, cough, Ethereum.
Projected Total Market Cap Valuations
Assuming the total cryptocurrency market cap reaches approximately $7.8 trillion in February 2025, we can expect significant shifts in the valuations of the top cryptocurrencies.
We’ve projected potential market caps for these assets based on their rank and the overall market growth.
For investors seeking guidance on when to sell, we provide a range of valuations based on the projected market cap:
- #11 – #25: $64 billion – $24 billion
- #26 – #50: $21 billion – $11 billion
- #51 – #75: $10 billion – $6 billion
- #76 – #100: $6 billion – $4 billion
This means that as the market cap grows, the valuations of ‘small caps’ and ‘mid caps’ become larger. We must adjust to the inflating numbers and revise our definitions of small caps. This, of course, needs to be done while keeping other factors in mind. Below, we see the explosive growth from when crypto was still in its infancy to the robust teenager it is today. This means it has to grow exponentially to provide similar returns, which could happen in crypto given the macroeconomic circumstances.
Conclusion
While the projected valuations may seem distant or unrealistic to some, there is still ample room for growth in the market. It’s important not to miss out on potential gains by holding onto biases that could impair your investment decisions. One such bias is the anchoring bias, where you rely on irrelevant information when making decisions, which can lead to missed opportunities.
A classic example is hesitating to invest in a project after it has already doubled in price, only to see it climb much higher.
The post Cryptocurrency Growth Predictions: What to Expect for the Top 100 by 2025 appeared first on YourCryptoLibrary.