While Bitcoin captured most of the headlines during the early March 2020 market turmoil, the altcoin market was quietly bleeding out at an even faster pace. By March 10, 2020, Ethereum had slipped to approximately $200, and the broader altcoin sector was deep in the red as the twin shocks of the COVID-19 pandemic and the Saudi-Russia oil price war sent investors fleeing from risk assets of every kind.
TL;DR
- Ethereum traded at approximately $200 on March 10, down sharply from recent weeks
- Total crypto market cap fell from $263 billion to $225 billion over the March 7-9 weekend
- Altcoins suffered disproportionately as risk appetite collapsed globally
- Bitcoin dominance increased as investors fled to the relative safety of BTC
- DeFi protocols braced for impact as the nascent sector faced its first major stress test
Ethereum Under Pressure
Ethereum’s decline to the $200 level was particularly significant. ETH had been trading above $270 as recently as late February, meaning the second-largest cryptocurrency had lost roughly 25% of its value in just two weeks. The decline reflected both the broader market sell-off and growing concerns about Ethereum’s near-term prospects.
The upcoming network transition — Ethereum 2.0 was still in development — added an extra layer of uncertainty. While developers continued working on the Proof of Stake upgrade, the immediate market reality was harsh. ETH holders were watching their portfolios shrink by the day, and the psychological significance of the $200 level was not lost on traders.
According to CoinMarketCap data from March 10, 2020, Ethereum’s market capitalization stood at approximately $22.1 billion, with 24-hour trading volumes surging as panic selling intensified. The ETH/BTC ratio was also declining, indicating that investors were rotating out of altcoins and into Bitcoin as a relative safe haven within the crypto ecosystem.
The Weekend Massacre
The damage had been done over the weekend of March 7-9. In a brutal 48-hour period, the total cryptocurrency market capitalization fell from approximately $263 billion to $225 billion — a staggering decline of roughly 14.4%. To put this in perspective, that meant approximately $38 billion in notional value was wiped out while most traditional markets were closed for the weekend.
The crash was triggered by a confluence of factors. On Saturday, March 7, news broke that Saudi Arabia had launched an oil price war against Russia after OPEC+ talks collapsed. Crude oil prices plummeted more than 30%, the largest single-day decline since the 1991 Gulf War. Meanwhile, COVID-19 cases were surging in Italy, South Korea, and Iran, with the virus beginning to spread rapidly across Europe and North America.
For altcoin investors, the weekend was especially painful. With traditional markets closed, crypto was one of the few markets where traders could express their fear. And express it they did — with leveraged positions being liquidated en masse as prices cascaded downward.
DeFi Faces Its First Real Test
The decentralized finance sector, which had been one of the brightest spots in the crypto ecosystem during early 2020, was about to face its first real crisis. Total Value Locked (TVL) in DeFi protocols had been growing steadily, but the market crash would expose critical vulnerabilities in these nascent systems.
The MakerDAO protocol, which issued the DAI stablecoin, would face severe stress during the Black Thursday crash just days later. Collateralized debt positions became undercollateralized as Ethereum’s price plummeted, and the protocol’s automated liquidation systems struggled to keep up with the speed of the decline. Bidders in MakerDAO auctions were able to purchase ETH collateral at virtually zero cost, resulting in an estimated $8 million in losses.
Other DeFi protocols including bZx were also experiencing issues. On March 10, 2020, bZx acknowledged ongoing challenges related to flash loan attacks that had occurred earlier in the year, compounding the sector’s credibility problems at the worst possible time.
Altcoin Carnage Across the Board
Beyond Ethereum, the altcoin market was a sea of red. XRP, then the third-largest cryptocurrency by market cap, was trading well below $0.20. Bitcoin Cash, Bitcoin SV, Litecoin, and EOS all posted significant losses. Even the then-nascent stablecoin markets were showing signs of stress, with USDT briefly trading above $1.00 as demand for dollar-denominated crypto assets surged.
Trading volumes across altcoin pairs exploded. Exchanges reported record activity as both panic sellers and bargain hunters rushed to execute trades. The surge in volume was a double-edged sword — while it demonstrated strong market interest, it also overwhelmed some exchange infrastructure, leading to temporary outages and delayed order execution during the most volatile periods.
Bitcoin Dominance Rises
One notable trend during the March 2020 crash was the increase in Bitcoin dominance. As altcoins fell faster than BTC, Bitcoin’s share of the total crypto market cap actually increased. This pattern — Bitcoin outperforming altcoins during market downturns — would become a recurring theme in subsequent market cycles.
For many altcoin investors, the lesson was painful but clear: in a risk-off environment, even the most promising altcoin projects can see their valuations decimated. The capital rotation from altcoins to Bitcoin, and eventually from Bitcoin to fiat, demonstrated the hierarchy of liquidity preferences that governs crypto market behavior during crises.
Why This Matters
The altcoin bloodbath of early March 2020 serves as a stark reminder of the asymmetric risks in cryptocurrency markets. While Bitcoin declined roughly 10% during the March 7-10 period, many altcoins lost 20-30% or more. The event also exposed the fragility of the early DeFi ecosystem, which would need to undergo significant improvements in liquidation mechanisms and risk management before earning broader trust. For investors, the key takeaway was clear: in a market crisis, liquidity dries up from the edges first. Altcoins — with their smaller market caps and thinner order books — are always the first to feel the pain, and often the last to recover.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
eth at 200 dollars. let that sink in for anyone who complains about current prices
eth/btc ratio tanking was the real pain. you were losing against both fiat and btc simultaneously
eth losing 25% in two weeks sounds rough but that was just the beginning. another 50% came two days later on black thursday
defi tvl at 600 million feels like another universe. one billion was the peak and it all vanished in 48 hours