Altcoin dominance
Subscribe to our weekly research newsletter here. Download Factsheet. May volatility spares no asset. May was one of the most volatile months in crypto market history. In a matter of days, Bitcoin lost nearly half of its value and most of the top crypto assets closed the month down double digits.
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Content:
- Crypto Market Insights And Analytics
- Bitcoin vs Altcoins: Why does bitcoin dominate the crypto market?
- Bitcoin vs. Altcoin: How Do You Evaluate A Cryptocurrency's Value in 5 Easy Steps
- When ‘alt season?’ Now, says analyst as Bitcoin dominance hits 6-month low
- Bitcoin-Altcoin-Dominance
- Bitcoin squeezes smaller rivals to its crown
- Altcoin Market Dominance at Highest Point in 3 Years
Crypto Market Insights And Analytics
Although BTC has been synonymous with the crypto industry, this is slowly changing with several blockchain-related innovations emerging from crypto projects outside of the bellwether crypto asset.
Some of these altcoins can even be considered as direct descendants of Bitcoin, at least in terms of them being created as a spinoff crypto asset after a major update in the Bitcoin blockchain. In the early s there were only a handful of altcoins, however, since Ethereum's debut in and subsequent growth in popularity in , the number of available altcoins on the market has significantly increased.
While Bitcoin continues to maintain a sizable, yet slowly dwindling, lead, the overall crypto market has matured to a point where you can now assess the value of each altcoin beyond comparing it to Bitcoin. With its decade-long track record, the ongoing financial revolution it ushered in, and the increasing influence it has exerted towards even the most traditional of financial institutions, Bitcoin is on track to remain the market leader for years to come, barring any extraordinary events.
Read more: What crypto should I buy besides Bitcoin? However, the boom of the overall crypto market has made space for notable altcoins to make their case as major players. While Bitcoin has the attention of even the most basic of crypto traders and owners, altcoins have the luxury to grow their reach and influence.
So far this year, out of the top cryptocurrencies listed on CoinMarketCap, only 10 cryptocurrencies performed worse than Bitcoin, including 15 of the top 20 crypto assets.
Nevertheless, each altcoin comes with its own set of strengths and weaknesses, raising questions about its long-term viability. Altcoins are typically created with a specific set of use cases that aim to solve a problem in any given industry through a blockchain solution.
An altcoin that has no clear-cut function will likely have no future as a store of value. Other altcoins say they want to become bigger than Bitcoin, which probably should already be a red flag for potential investors. Here are a couple of questions to guide your research: :. Ask yourself the following questions:.
Keep in mind,this factor may matter more for new altcoins that have yet to make an impact in the industry. But if an altcoin has been around for quite a while, the next factor will probably be more important.
Sometimes, a crypto project and its associated altcoin may have team members with reputable CVs. Beware of the red flags that may come up as you answer the following questions:. Simply put, when more people trade higher amounts of an altcoin in the market, that altcoin is in good shape. There are two important questions under this factor:.
Altcoins that are easy to acquire are more accessible to the public and more likely to scale to bigger markets. Check the following:. If the answers to the above questions are unsatisfactory , then you may be better off sticking to your current plan in the meantime until you see an altcoin worth your investment. You can also take cues from factors that are considered by some of the most established companies in the crypto space.
In many cases, altcoins are subject to a higher level of scrutiny. For instance, Binance has its own system to determine which altcoins are worthy of being offered on the trading platform. When we conduct these reviews, we consider a variety of factors for listing or delisting a crypto asset, such as:. With that being said, we hope this article gives you a more precise process towards picking altcoins suitable for your portfolio and risk appetite.
Note: This article does not endorse any cryptocurrency or crypto project and should not be considered as outright investment advice, but as a jump-off point on your way to forming your own research and conclusions. Binance is not responsible for any result that emerges from your independent trading activities. Read the following helpful articles for more information:. Binance Blog. Bitcoin vs.
Bitcoin vs Altcoins: Why does bitcoin dominate the crypto market?
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Bitcoin vs. Altcoin: How Do You Evaluate A Cryptocurrency's Value in 5 Easy Steps
By Marco Cavicchioli - 28 Dec But the current level is only slightly higher. Note that also saw a somewhat similar path. Despite a similar path in some ways, it is the extremes that are different. However, it should be pointed out that before there were very few altcoins, and among them, the weight of stablecoins on the overall market cap was minimal. But now, there are more than 10, altcoins , with two stablecoins in the top ten by market capitalization and three in the top In other words, in , there was a real altcoin rally that led them to subtract a significant portion of dominance from Bitcoin, i.
When ‘alt season?’ Now, says analyst as Bitcoin dominance hits 6-month low
Bitcoin gained The price of bitcoin increased in 5 of the 9 months thus far in and ended the quarter with a year-to-date return of In terms of price action, bitcoin gained While bitcoin is the most valuable digital asset today, the addition of Ethereum, layer 1s, DeFi protocols, NFTs, and gaming has resulted in declining market share over the last six years.
Bitcoin-Altcoin-Dominance
Representations of virtual currency Bitcoin are seen in this picture illustration taken taken March 13, Bitcoin is beginning to reassert its dominance over challengers to its cryptocurrency crown. Yet bitcoin has stemmed its loss of market share last month, and begun to regain ground, as rattled investors seek the relative safety of the biggest crypto player while they contend with an aggressive Fed and talk of war in Europe. Nonetheless, some say year-old bitcoin could continue to benefit versus its crypto rivals from the more cautious investment climate. While most cryptocurrencies still take their price cues from bitcoin, some fund managers expect a gradual divergence, or decoupling, this year that will require more discrimination. Its main challenger ether, the coin of the Ethereum blockchain, is down 34 per cent.
Bitcoin squeezes smaller rivals to its crown
The original digital coin was assailed by thousands of new "altcoin" competitors in — from Solana and Polkadot to Litecoin and Dogecoin — raising the prospect of a rapid fragmentation of the crypto market. Yet bitcoin has stemmed its loss of market share this month and started to regain ground, as rattled investors seek the relative safety of the biggest crypto player while they contend with an aggressive Fed and talk of war in Europe. Market players caution that it's too early to call it a trend and note that while bitcoin has outperformed the industry, the entire crypto market has fallen this month. Nonetheless, some say year-old bitcoin could continue to benefit from its crypto rivals during a more cautious investment climate. While most cryptocurrencies still take their price cues from bitcoin, some fund managers expect a gradual divergence or decoupling, this year that will require more discrimination. It's been a torrid start to the year for cryptocurrencies, as unnerved investors ran from risk.
Altcoin Market Dominance at Highest Point in 3 Years
The original digital coin was assailed by thousands of new "altcoin" competitors in - from solana and polkadot to litecoin and dogecoin - raising the prospect of a rapid fragmentation of the crypto market. Yet bitcoin has stemmed its loss of market share this month, and begun to regain ground, as rattled investors seek the relative safety of the biggest crypto player while they contend with an aggressive Fed and talk of war in Europe. Market players caution that it's too early to call a trend, and note that while bitcoin has outperformed the industry, the entire crypto market has fallen this month. Nonetheless, some say year-old bitcoin could continue to benefit versus its crypto rivals from the more cautious investment climate.
The greater the market capitalization of Bitcoin, the clearer its dominance becomes versus the rest of the crypto coins. However, a change in occurred in March as newcomers in the form of altcoins burst onto the scene. Later that year, Bitcoin went on its fabled bull-run which started in July and ended in December. A cyclical pattern began to emerge, where money or capital moves between Bitcoin to altcoins and back to Bitcoin. This movement from Bitcoin to altcoins is part of the CMFC model, which indicates that there are a series of capital flows that occur with a degree of reliability throughout the crypto space. The flow of capital is as follows:.
The original digital coin was assailed by thousands of new "altcoin" competitors in - from solana and polkadot to litecoin and dogecoin - raising the prospect of a rapid fragmentation of the crypto market. A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, Yet bitcoin has stemmed its loss of market share this month, and begun to regain ground, as rattled investors seek the relative safety of the biggest crypto player while they contend with an aggressive Fed and talk of war in Europe. Market players caution that it's too early to call a trend, and note that while bitcoin has outperformed the industry, the entire crypto market has fallen this month. Nonetheless, some say year-old bitcoin could continue to benefit versus its crypto rivals from the more cautious investment climate.
The market share of Bitcoin owners in global crypto owners has declined from 67 per cent in January to 51 per cent in June , thanks to different new altcoins that have grown from 20 per cent to 38 per cent during the said period, according to a report by Hong Kong-based payments and cryptocurrency platform Crypto. The altcoins have also been eating the market share of Ethereum that narrowed from 13 per cent in January to 10 per cent in June. Altcoin adoption particularly in May had led to a massive surge in crypto users from million at the end of April to million as of June, likely because of the influx of new users who were keen in coins such as Shiba Token and Dogecoin, etc. However, the number of global crypto users had doubled in only four months from million to million vis-a-vis nine months taken for the user base to grow from 65 million in May last year and over 66 million at the end of that month to million.
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