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

The findings highlight Bitcoin’s role as a more stable asset for capital preservation in the fluctuating cryptocurrency market.

Bitcoin vs. Altcoins: Which is Better ⁉️

Swan shared its insights in a detailed thread on X

“Altcoins don’t just underperform Bitcoin. They collapse against it,” the post read.

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

“The median altcoin reached a -90% drawdown in just 10–20 months, ” Swan revealed.

Moreover, according to Swan’s data, Terra (LUNA1), Ontology Gas (ONG), and Bitgert (BRISE) collapsed the fastest, hitting the 90% drawdown mark in under two months. Larger, 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. Meanwhile, Litecoin (LTC) experienced a gradual decline, taking 69 months. Monero (XMR) saw the slowest drop, taking six years to reach a -90% drop.

Swan’s analysis extends to 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 among them 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 findings point to a systemic issue within the altcoin space. The data suggests that altcoins, often marketed as alternatives to Bitcoin, fail to deliver sustained value over time compared to the leading cryptocurrency.

Swan also stressed that long-term outperformance by altcoins is exceptionally rare. Furthermore, the firm believes survivorship bias the tendency to focus on successful projects 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.

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