The cryptocurrency market lags behind the traditional market. For example, while the prices of Bitcoin and most crypto assets are falling, the S&P 500 index is trading near all-time highs. This situation raises questions about the true utility of most crypto assets.
Financial analyst Geneva Investor published a report on May 27, 2026 warning: The story that powered thousands of crypto projects has lost momentum. Experts say these assets have suffered severe wear and tear as they have not fulfilled their initial promise of technological and financial progress.
“What we are witnessing is consistent with a bearish scenario,” he points out. He added that the sector faces a “narrative problem” as cryptocurrencies generally do not act as a hedge against inflation in the short term.
It’s worth clarifying that unlike popular cryptocurrencies, Bitcoin (BTC) is historically proven. be an asset that can act as a true haven and hedge against inflation; In the long run. This characteristic is based on a monetary policy regulated by a programmed absolute shortage of up to 21 million coins and a halving every four years.
Analysts point to DeFi platforms, which offer financial services without intermediaries through smart contracts and attracted millions of users in the past year, as an example. However, the field faces serious obstacles. DeFi is still an experimental technology, operating live and processing billions of dollars.
As reported by CriptoNoticias, the DeFi industry faces incentives to be compromised, configurable code that spreads risk from one protocol to another, and an attack surface that grows faster than it can audit. This vulnerability was exposed after a wave of hacks, “corralitos”, and statutory freezes that affected several protocols, particularly in April and May of this year.
Reflecting this reality, DeFi’s total value locked (TVL) has declined by 36% from $127 billion at the beginning of the year to $78 billion today.
“Volumes have remained essentially stable over the past two years, even as excitement about new projects has waned,” the analyst said. According to the report, that value is primarily generated by fees charged by exchanges and custodial platforms, and not by the network or token itself.
The saturation of projects with tens of thousands of tokens issued over the past decade has diluted the capital of retail investors. the result, Many cryptocurrencies that were previously dominated by market capitalization have lost their position. Dramatically, experts say.
“What is even more concerning is that many cryptocurrencies that were in the top 10 market capitalization during the 2020-2021 BTC bull market have dropped off the list,” Geneva Investors noted. Among these projects, analysts cite, for example, Cardano (ADA), Polkadot (DOT), and Litecoin (LTC), which currently occupy 13th, 37th, and 23rd place, respectively.
ADA is currently trading at $0.22. 92% below the all-time high of $3 set in 2021. DOT is trading at $1.13, 98% off its all-time high of $55, while LTC is trading at $49, which is also 88% below its 2021 all-time high of $412.
This decline in ground is also reflected in the dominance of Bitcoin (BTC), which is currently around 60% as seen in the chart. This level indicates that Bitcoin has gained a relatively large market share compared to virtual currencies.
The music will continue to play for Bitcoin
Geneva Investor said: Bitcoin remains the digital currency that best justifies investment.
I think Bitcoin is increasingly establishing itself as the dominant currency. This shows that it is still the crypto asset with the strongest market narrative, one that is not driven by the logic of active trading rather than real value creation. In this sense, I continue to think this is the most interesting asymmetric bet in this space.
Geneva Investor, Financial Analyst.
According to Geneva Investors, its consolidation as a global reserve asset depends on itcentral banks, pension funds and governments to adopt it. on a large scalehe says, is something “yet to be seen.”
The analyst also believes that Ethereum’s cryptocurrency, Ether (ETH), could be an “interesting option as it is the primary network supporting stablecoins.”
In addition to the story of Bitcoin as a store of value, analysts are also favorably looking at stablecoins USDT and USDC, two tokens supported by advances in U.S. transparency laws. The legislative proposal aims to create a clear federal regulatory framework for issuers of such cryptocurrencies, requiring one-by-one liquid asset-backed reserves and banning risky algorithmic variants.
“Of course, by definition, stablecoins are pegged to the underlying currency, so it makes no sense to invest in stablecoins. What makes sense is to invest in financial institutions and projects related to the use of stablecoins. Some of these options include acquiring stakes in companies such as Circle (issuer of USDC), custodial infrastructure providers, or institutional payment gateways that integrate stablecoins.
The current situation is forcing ecosystem participants to abandon promise-based speculation and demand proven infrastructure and real value, the report notes. This transition redefines the risk map and points to a more mature and specialized market in the next cycle.
(Tag translation) Altcoin
