The cryptocurrency market staged a remarkable recovery in 2019, rebounding from the severe bear market of 2018. Numerous digital assets experienced substantial price appreciation, particularly during the first half of the year. This analysis examines the best and worst performing cryptocurrencies from that period, including detailed performance metrics for major assets like Bitcoin and Ethereum.
Cryptocurrencies are renowned for their extreme volatility, and 2019 provided no exception. While some assets like Luna Coin (LUNA) achieved staggering gains of nearly 49,000%, others like Dogecoin (DOGE) demonstrated remarkable stability, ending the year at approximately the same price where it began.
Bitcoin (BTC) Performance Analysis
- Market Cap Rank: 1
- Year-to-Date Gain: +87%
- Maximum Gain (6 months): +282%
Bitcoin delivered an impressive 282% return during the first six months of 2019, reaching $13,000 by June—its highest level since January 2018. This bullish momentum helped catalyze a broader market recovery across the cryptocurrency sector.
The flagship cryptocurrency did experience significant volatility, however. On July 11, Bitcoin dropped 10% within 24 hours following critical comments from U.S. lawmakers about Facebook's Libra project, marking its largest single-day decline of the year.
Ethereum (ETH) Market Performance
- Market Cap Rank: 2
- Year-to-Date Change: -12%
- Maximum Gain (6 months): +139%
Despite ranking as the second-largest cryptocurrency by market capitalization, Ethereum finished 2019 with a 12% decline despite a strong first half that saw 139% gains. The most significant downturn occurred in July when ETH dropped 36% over a ten-day period.
This price performance contrasted with fundamental developments within the Ethereum ecosystem. The network made significant progress in decentralized finance (DeFi) adoption and advanced its transition to Ethereum 2.0 with its proof-of-stake consensus mechanism. Many supporters anticipated that Bitcoin's upcoming halving event might positively impact Ethereum's price in the following year.
Top Performing Cryptocurrencies of 2019
For certain investors, 2019 proved exceptionally profitable. The best-performing digital assets included LUNA, SEELE, and MATIC, each delivering extraordinary returns throughout the year.
LUNA (Terra)
- Market Cap Rank: 62
- Year-to-Date Gain: +25,000%
- Maximum Gain (24 hours): +48,900%
LUNA's price chart resembled a dramatic心电图 with an astronomical 48,900% spike on August 19. This movement exhibited characteristics of a pump-and-dump scheme, where prices are artificially inflated before being sold off. Despite a subsequent decline, LUNA maintained an impressive 25,000% year-to-date gain, rising from $0.001 to $0.25.
SEELE Token
- Market Cap Rank: 45
- Year-to-Date Gain: +2,640%
- Maximum Gain (12 months): +2,640%
This Ethereum-based token achieved nearly 27x growth throughout 2019. SEELE climbed from $0.005 at the beginning of the year to $0.137 by year's end, maintaining consistent upward momentum without the extreme volatility seen in other assets.
Matic Network (MATIC)
- Market Cap Rank: 89
- Year-to-Date Gain: +285%
- Maximum Gain (1 month): +1,233%
As an important contributor to Ethereum's ecosystem, Matic Network provides layer-2 scaling solutions through side chains for off-chain computation. The token experienced a remarkable 1,233% surge in May, though it gave back 52% of those gains within the same month.
In mid-November, MATIC reached an all-time high of $0.042 on December 8 before plummeting 70% and returning to its price level from two weeks prior. The Chief Operating Officer of Matic, Sandeep Nailwal, attributed this dramatic drop to market manipulation and promised a detailed analysis of the December crash.
Despite these volatility, MATIC maintained a price approximately 4 times higher than its initial offering, keeping early investors in profitable territory.
Chainlink (LINK)
- Market Cap Rank: 19
- Year-to-Date Gain: +459%
- Maximum Gain (6 months): +1,186%
Chainlink garnered significant attention throughout 2019 by establishing partnerships with major companies including Google, Binance, Oracle, and Aelf. These developments helped propel the token to a 10x increase during the first half of the year. The rally was further bolstered by Coinbase's announcement that it would list LINK shortly after its impressive performance.
Binance Coin (BNB)
- Market Cap Rank: 8
- Year-to-Date Gain: +122%
- Maximum Gain (6 months): +548%
As the native token of the Binance exchange, BNB benefited tremendously from the popularity of Initial Exchange Offerings (IEOs) throughout 2019. The token gained 548% during the first six months and maintained a 122% year-to-date increase despite market fluctuations.
Worst Performing Cryptocurrencies of 2019
Despite Bitcoin's overall positive influence on the market, many alternative cryptocurrencies (altcoins) experienced significant declines throughout the year.
BitTorrent (BTT)
- Market Cap Rank: 65
- Year-to-Date Change: -99%
- Maximum Decline (10 days): -38%
As one of Binance's early IEO projects, BTT initially performed well, reaching an all-time high of $0.0017 in May. However, the token subsequently declined dramatically, finishing the year down 99% from its starting price. Despite this poor performance, BitTorrent remained one of the more successful IEO projects when compared to its initial offering price.
Bitcoin Gold (BTG)
- Market Cap Rank: 46
- Year-to-Date Change: -59%
- Maximum Decline (6 months): -82%
2019 proved disappointing for Bitcoin Gold holders, with the asset declining 82% during the second half of the year. BTG dropped from $31 on June 25 to approximately $5.30 by year's end, reflecting persistent selling pressure throughout the period.
Stellar (XLM)
- Market Cap Rank: 12
- Year-to-Date Change: -63%
- Maximum Decline (12 months): -63%
Stellar Lumens joined the list of major decliners with a 63% decrease throughout 2019. XLM declined from $0.08 in November to $0.044 by the end of the year, despite maintaining a relatively high market cap ranking among cryptocurrencies.
Market Outlook and Investment Considerations
While the cryptocurrency market underperformed during the second half of 2019, Bitcoin's recovery from late-2018 lows demonstrated the market's resilience. However, given the extreme volatility and speculative nature of many digital assets, investors should carefully evaluate projects and consider risk management strategies before allocating capital.
The dramatic price movements witnessed in 2019 highlighted both the opportunities and risks inherent in cryptocurrency investing. While some assets delivered life-changing returns, others experienced devastating losses, emphasizing the importance of thorough research and disciplined investment approaches.
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Frequently Asked Questions
What does HODL mean in cryptocurrency?
HODL is a term derived from a misspelling of "hold" that has become popular in the cryptocurrency community. It refers to a long-term investment strategy where investors buy and hold digital assets regardless of short-term price fluctuations, believing in their long-term appreciation potential.
Why did some cryptocurrencies perform better than others in 2019?
Performance differences resulted from various factors including technological developments, partnership announcements, exchange listings, market manipulation, and overall adoption trends. Projects with strong fundamentals and ecosystem growth typically demonstrated more sustainable performance.
How can investors identify potential pump-and-dump schemes?
Warning signs include extreme price spikes without fundamental justification, concentrated social media promotion, low liquidity, and anonymous development teams. Investors should exercise caution with assets exhibiting these characteristics and prioritize projects with transparent operations and verifiable use cases.
What is the significance of Bitcoin's halving event?
Bitcoin's halving reduces the block reward miners receive, effectively decreasing the rate of new Bitcoin creation. Historically, this supply reduction has preceded bull markets, though past performance doesn't guarantee future results. The 2020 halving generated significant anticipation among investors.
How important are partnerships for cryptocurrency prices?
Strategic partnerships with established companies can significantly impact prices by validating technology and expanding potential use cases. However, investors should distinguish between substantive collaborations and mere announcements without concrete implementation plans.
What risk management strategies are recommended for crypto investors?
Diversification across different assets, position sizing, stop-loss orders, and thorough fundamental analysis can help manage risk. Investors should only allocate capital they can afford to lose and consider both technical and fundamental factors before making investment decisions.