Crypto’s riskiest coins plummet to lows not seen since Covid

Crypto’s riskiest coins plummet to lows not seen since Covid

The MarketVector Digital Assets 100 Small-Cap Index, which tracks the 50 smallest digital assets in a basket of 100, fell to its lowest level since 2020 on Sunday.

The low-point came as Bitcoin, the largest cryptocurrency, erased what was until recently a 30% year-to-date gain, just weeks after setting an all-time high. Seen as a barometer for the very riskiest of speculative appetites, so-called altcoins are lagging their larger counterparts badly in 2025.

During past bull markets, the small-cap index often outpaced its large-cap counterpart, benefiting from traders’ hunger for high-risk, high-reward bets. But that trend reversed last year after the US approved Bitcoin and Ether exchange-traded products, which became a focal point for institutional flows.

Over the past five years, the small-cap index is down nearly 8%, while its large-cap counterpart has surged about 380%, highlighting how far the segment has fallen out of favor.

Retail traders are learning lessons from previous cycles, said Pratik Kala, portfolio manager at Australia-based hedge fund Apollo Crypto. “A rising tide doesn’t lift all boats — it only lifts the quality ones,” he added.

The broader crypto market is still reeling from an October 10 meltdown which triggered about $19 billion in liquidations and wiped out more than $1 trillion in market value across all tokens. Since then, risk appetite has collapsed, and traders continue to steer clear of the most speculative corners of the market.