This week, bitcoin’s market dominance among the market capitalization of all 12,046 crypto assets in existence has been hovering above 38%, while ethereum’s overall valuation commands 19% dominance. A report published on Monday shows that since 2014, the market share of altcoins surged threefold from 21% in 2014, to today’s market share of 62%.
Report Says ‘The Tide Is Turning’, Altcoins ‘Gaining Ground on Bitcoin’
A report published by tradingplatforms.com and author Edith Reads shows that the value of altcoins has swelled over the past seven years. The author’s report explains that “the tide is turning” and altcoins “are gaining ground on BTC as their popularity continues to soar.” It is well known that since the inception of Bitcoin, the market dominance of BTC among all other existing crypto assets has been over 80% until February 2017. As of February 26, 2017, BTC had a market dominance rating. of 86% and it never returned above. the 80% range since that day.
“Since 2014, the market share for Altcoins has been on an upward trajectory,” the tradingplatforms.com author explains. Reads notes that as of December 9, 2021, altcoins represented 62% of the market share. “The figure represents a tripling of their dominance in the last seven years. They’ve surged threefold from a market share of 21 percent to stand at the current 62 percent figure,” Reads’ study adds.
The report goes on to share the growth of the altcoin space and the growing interest in altcoins. “The growth of [the] the dominance of the altcoin market is indicative of a shift in thinking about crypto assets, ”Reads said. “Many are adopting them as alternatives to BTC. As the crypto space continues to expand, BTC’s dominance will come under increased pressure, ”notes the researcher from tradingplatforms.com.
Study’s Author Claims ‘Market Cap Is a Crucial Factor in Crypto Ranking’
The author claims that market share dominance is a significant factor and BTC’s market share has been declining. “In December 2014, [BTC’s] market cap stood at 78 percent,” the study highlights. “But that position has continued to erode to stand at 38 percent at the study’s publication.” Reads further opined:
Higher market dominance in most cases translates into higher market capitalizations. Market capitalization is a crucial factor in crypto ranking. Large caps suggest safe investment options, as these cryptos tend to be less volatile. Essentially, it is an indicator of the stability of the asset.
Today there are more than 12,000 crypto-assets in existence that have a recorded price value according to coingecko.com metrics. While ethereum (ETH) commands 19.1% of the $2.54 trillion, many other coins have decent shares of the overall crypto economy as well. BNB has a market dominance of 3.64% and the stablecoin tether (USDT) has around 3.06%. Solana (SOL), the fifth-largest crypto market cap today, captures 2.45% of the $2.54 trillion and cardano (ADA) commands 1.97% of the crypto economy.
The study from tradingplatforms.com insists that there are a few advantages that altcoins have over BTC, including “gaining ground in the [decentralized finance] sector. “Reads opinions that in terms of scaling,” altcoins are built on better blockchain technology. “She says BTC also deals with a lot of environmentally conscious people and Reads mentioned that” Elon Musk has been a vocal critic “.
