Dominance is one such word that defines one’s presence in an emerging environment. Be it a novice or an antique item, it will be significant for the population only when the need, demand, and quality of the same item is still perfect or better than the rest. One should not be the best but should be better than the rest to keep up in the race. Not just in the physical world but similar holds for the digital world of cryptocurrencies as well. The most popular cryptocurrency is Bitcoin and is constantly making fluctuations in the market thereby creating a decrease in the sense of belief of investors. Other currencies can take over if it continues for a long time. Visit the Profit Edge website for more information on bitcoin trading.
Bitcoin possesses a greater share of the market in its hold and it is believed that more than half of the market is held up by the bitcoin investment. But this margin of dominance is constantly decreasing with time, Altcoins taking up more market share. The increase in the value of Altcoins is making the BTC investors doubt their investments thereby making their investments in Altcoins and withdrawing the old from the BTC.
Altcoins are gaining more popularity because the price of BTC has skyrocketed in some time thereby making it quite expensive for investors to invest in it. This is making chances for other cryptocurrencies to prove their ground and start their journey from scratch to the palaces.
Effect of dominance on the market
Market dominance is generally considered taking the cap of the market. Presently the greatest share of market cap is held up by the bitcoins and is constantly increasing thereby making some fluctuations in the recent past. The market is sharing the caps in varied proportions thereby making investors believe that some of the currencies are better in comparison to the others.
Altcoins are encroaching the BTC market cap after the bully period of 2017-18. Mostly Ethereum is taking the largest share and is leading the army of Altcoins. Several other altcoins have crept into the market and share the market caps thereby decreasing the ultimate BTC cap.
Before the period of Altcoins, only one potential investment was seen in the form of BTC. After the advent of other alternatives, investors are seeing other potential investments in the form of Ethereum, Matic, and many others that are now flooded in the market.
Current market dominance status of BTC
Investors are now keenly investing in the alternatives of BTC. Without a doubt, the price of Altcoins is constantly rising. Though the major proportion of the market is still in the grip of bitcoins, the slow and steady pace of Altcoins is affecting the market cap.
Bitcoin being on the side of expensive field investors is seeking a break from the old traditional form of investment. In recent times there is the introduction of many new cryptocurrencies as well whose prices are still under control. But the investors are seeking them as an alternate option to BTC.
All the points discussed above do not mean that the era of bitcoins has come to an end but it should be taken as the “altcoin season” and nothing else. In the near future, it is unpredictable whether this boom will continue or the flowering period will be over after the spring season has withdrawn. The coming few years are important both for bitcoin and Altcoins and will decide the fate of the leaders.