According to Delphi Digital data, all crypto sectors have grossly underperformed Bitcoin this year.
In Q4 2024, the excitement in the crypto markets was palpable as the industry anticipated market effects from the presidency of Donald Trump, who had waxed pro-crypto on the campaign trail. However, things have taken a sharp turn with the turn of the new year.
Specifically, investor sentiment has soured amid inflation and trade war concerns. In the latest instance highlighting this, data from a crypto research firm has revealed gross underperformance across all crypto sectors year-to-date (YTD).
Investors Fleeing Speculative Crypto Sectors?
According to Delphi Digital data, shared on Tuesday, February 25, all crypto sectors have grossly underperformed Bitcoin this year.
While Bitcoin is down only a mild 5% YTD, Delphi Digital data suggests that most crypto sectors are seeing over 50% losses. AI framework projects are posting over 84% average losses, AI Agents are averaging over 70% in losses, memecoins nearly 52%, gaming the same, and modular frameworks over 47%.
All sectors have underperformed BTC this year
Average Biggest Losses
– AI Frameworks (-84.05%)
– Agents (-70.27%)
– Memecoins (-51.74%)
– Gaming Infra (-51.54%)
– Modular (-47.48%) pic.twitter.com/HK0yRIpS7d— Delphi Digital (@Delphi_Digital) February 24, 2025
Along with recent price action that has seen Bitcoin fail to establish a clear price trajectory while a number of altcoins take steep losses, the Delphi Digital data suggests investors are on the fence about Bitcoin while actively cutting exposure to more speculative assets amid uncertain market conditions.
Unsurprisingly, the data has sparked a mix of reactions from crypto community members. As one analyst highlighted, the recent market uncertainty will likely offer insight into the enduring strength of these crypto sectors as investment narratives.
Wen Crypto Market Rebound?
Several crypto analysts have attributed the recent crypto market rout to a lack of near-term catalysts. For instance, in a recent note to investors, JPMorgan analysts highlighted that while pro-crypto initiatives from the present U.S. administration were likely to boost the market, they would not kick in till the second half of the year.
As such, in the short term, analysts cautioned that the crypto markets continued to face downside risk, citing weakening demand and profit-taking from institutions.
Indeed, Bitcoin kicked off this week by falling to three-month lows, as exchange-traded funds saw their largest outflow day on record.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
