Bitcoin Dominance Nears 57%, a 2018 High, as Altcoins Continue to Purge
Altcoins Are Yet To Catch Up With Bitcoin As Its Dominance Grows With No End
Compared to the figure obtained towards the end of the previous year, Cryptocurrency which has seen more adoption in recent years seems to be facing a hard time at the moment as the total market cap of all digital currencies is not below $200billion, the lowest value since November 2017.
Despite the plunge in value, it has been observed that Bitcoin, the crypto chief, seems to have far wide dominance in the market compare to others. At present, the market cap of Bitcoin which is $108.44 billion holds over 55% dominance of the total market cap of all the 3926 coins available in the market which is $194.13billion.
Since the creation of Bitcoin in 2009 till date, Bitcoin has been leading the market, and it doesn’t look like it is going to retard. It has always been used as a yardstick for monitoring how well the market is perform. When Bitcoin is on the upside, most altcoins trend with it and vis-à-vis.
Since the inception of the pioneer till 2016, most altcoin have rather not existed or displayed insignificant presence in the market.
After 2016, with the initiation and growth of ICOs, altcoins began to grow dominance in the market gradually. By July 2017, Bitcoin market cap only represent 37.82% share, while its seconder, Ethereum dominated the market with 30%. Ethereum, then was the primary blockchain which majority of ICOs were been launched.
After the upward trend of ICOs in the market, it later gradually fell in the market, and by September 2018, most of the ICO tokens had lost about 90% of their value.
As of today, Ethereum is valued below $200 and its dominance in the market had dropped to 10%, creating more gap as Bitcoin continues to gain dominance.
Despite the proclamation made by altcoins at their creation that they will live to fill Bitcoin’s void, and the fact that Bitcoin is dented with scaling challenges, the Cryptocurrency still remains at the top, the most widely used, and maintains it core value which is for storing and transferring dough.
Due to the global backing from miners and sensitization from larger society, the currency has relatively maintained its demand rate in the market, and its dominance continues to grow.
Contrarily, altcoins have been able to exist in other areas like supply chain, real estate and IoT, among others, championing the sectors by solving various problems. This made them face the challenge of dominancy in 2017, as they failed to perform their major purpose, which is trading and investment.
In line with a report issued by Kerooke, a crypto analyst, only 27 cryptocurrencies had more than 400 active addresses (users) on their platform on September 5.
Forget about dApps with no users, let's talk about tokens with no users.
Only 27 cryptocurrencies had over 400 active addresses today. Yes. 400 users.
You'd think if there was ever a time to 'buy the dip' or 'panic sell' it would be today. 🤷♂️ pic.twitter.com/l1INETwawj
— Kevin Rooke (@kerooke) September 6, 2018
This is because many perceived coins as speculative assets rather than trading them for what they are to be used for. It is evident that majority are more concerned about speculating the price of coins, making them leave their crypto assets on exchanges rather than keeping them in digital wallets.
However, Bitcoin is an exception of this scenario. It is by far ahead of other cryptos in terms of retail, institutional and enterprise adoption. More businesses than ever are now accepting Bitcoin as payment option beyond any other coin. This made people to store their Bitcoin assets in cold and hot wallets in contrary to others.
Attesting to the dominance of Bitcoin in the market, wealth in the crypto space are being measured by the value of Bitcoin at hand.
Many have speculated that a large number of investors and traders utilizes altcoins cumulatively than Bitcoin. But as an investor, it is glaring that holding Bitcoin for more than 90 days will result to lesser amount of loss compared to others. This makes it clear that Bitcoin is better held as asset than others during market surge.
Not to sweet-talk, majority of the claimed problems with which the new Cryptocurrencies have emerged for are yet to be solved. They failed to live up to their billing or struggle with it.
It is likely that in the future a sizeable number of the altcoins will grow to the extent that they will be bought by people for their utility and they will gradually be seen as substitute to BTC rather than secondary notes that ought to be traded to amass more BTC. At the moment, coins that could be viewed as alternative to Bitcoin include Bitcoin cash, Dash and Litecoin.
All in all, the crypto industry is at its early stage of fruition. Even though Bitcoin still remains the chief amongst others, there is still chance for altcoins to compete with Bitcoin as long as they can persuade buyers to store and spend their currency for real trading purpose as people do with Bitcoin around the world today.