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Leading analysts predicted an altcoin bear market where BNB, XRP, Solana, Cardano and Dogecoin will witness 90% decline in prices.

Total value locked in the DeFi ecosystem of Solana, Cardano and Binance Smart Chain has plummeted over the last week.

Among altcoins, Ethereum, BNB, XRP, Solana, Cardano, AVAX, Dogecoin and Polkadot prices went through a steep decline.

Sam Kopelman, UK manager of Bitcoin and cryptocurrency exchange Luno, believes the crypto market is hit by a spillover of the US Federal Reserve's monetary policy tightening and plummeting stock prices.

A recent report by cryptocurrency trading platform Bybit revealed that there is a massive decline in the total value locked on Ethereum, Solana, Cardano, and Avalanche in the DeFi ecosystem.

Total DeFi ecosystem TVL Source: Defi Llama The fear and volatility in the crypto ecosystem have resulted in a consistent outflow of capital that was previously invested in altcoins like Solana, XRP, Cardano, Dogecoin, Ethereum and Avalanche.

Though Ethereum-killer alternatives like Solana have presented themselves as highly efficient cryptocurrency products or services, the lackluster price performance can be attributed to outdated accrual designs and misaligned incentives.

The lack of innovation and incentives in token models on Solana and Ethereum alternatives has been identified as a critical trigger for loss in protocol revenue.

Analysts believe Bitcoin price could plummet to $20,000, and altcoins could draw down 90% in the ongoing bear market.

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