BTC Dominance Declines As The New Altcoins Gain Popularity
Posted By Anirudh Bhardwaj | 04-Jan-2018
Bitcoin has enjoyed a golden period for quite a long time. It has been ruling the entire cryptocurrency space since its launch in 2009. Being the world’s first cryptocurrency, Bitcoin has been the backbone of the cryptocurrency domain and if it wasn’t for Bitcoin, the term ‘Cryptocurrency’ won’t even be existing. Although most of the cryptocurrencies have been derived from the Bitcoin’s codebase, the growth shown by some of these Altcoins is exemplary.
In 2017, Bitcoin has shown a massive surge in price and its market cap has reached an all time high. But despite this steady growth, it ended up losing most of its market share to other popular Altcoins like Ripple, Ether, Litecoin and Bitcoin Cash. While the market share of Bitcoin opened with over 70% during January, the latter declined to as low as 38% by the end of December. The current market share of Bitcoin is standing at 38.2% which is likely to depreciate as the new Altcoins continue to rise.
Why Bitcoin Dominance Is Declining?
Bitcoin is still the world’s most popular Cryptocurrency with a whopping market cap of over $226 billion. However, its dominance keeps on declining as the new cryptocurrencies are gaining the thrust. Besides, the $226 bn market cap doesn’t seem to be that big now as compared to that of the cryptocurrency market which adds up to $615 bn.
As it turns out, this is the second time the market share of Bitcoin has gone this low. The first time it happened was in June 2017. After that short debacle in June, the market share rose up to 60% in November 2017 until it finally fell below 40% by the end of 2017. The main reason of this depreciating value is the rising popularity of some Altcoins like Ripple, Ether, Litecoin and Bitcoin Cash. Out of all these, Ripple has shown a massive growth during the past few weeks driving the market value of its XRP token to unprecedented levels. With a market cap of $89 bn, Ripple is now the world’s second most popular Cryptocurrency followed by Ethereum with $85 bn.