I did some cycling tests for a Lithium ion Cell to see how the capacity fades. I got those results (see figure ). I couldn't realize why the capacity degrades in a such way, I expect that the degradation will be more-less linear.
It is absolutely normal to see the steps of the capacity after large number of cycles. In case of the very uniform battery there will be one big step from some value around 70% of the initial capacity to almost 0, but if the different parts of the cell behave differently, the onset of this drop will correspond to different number of cycles and one will see a series of the small steps corresponding to the inactivation of each area separately.