Bitcoin loses to small-cap altcoins

CONTENT

  • ETH overtook bitcoin in terms of capitalization

  • Low-cap altcoins become more popular than other cryptocurrencies

  • Experts believe that Bitcoin’s dominance is not over yet

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Over the past few years, the bitcoin market has vastly outnumbered altcoins of all types. Nevertheless, in the new realities, altcoins still surpass BTC in popularity. In the last six months of 2020 alone, the number of small-cap altcoins has grown fivefold compared to BTC.

Altcoins outperform BTC

 

TOP 5 ALTCOINS FOR HUGE GAINS IN FEBRUARY CRYPTO GEMS 2021

The beginning of the year turned out to be difficult for the cryptocurrency world. After the introduction of quarantine measures, the fall of the currency and stock markets and a large-scale sale on Bloody Thursday, bitcoin lost almost half of its value, but managed to recover in a few weeks. At the same time, the capitalization of altcoins has increased significantly, and new projects have entered the market, which have already managed to occupy their niche..

According to the latest research by Arcane Reserch, the token is the leader in 2020 in terms of capitalization. As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More ETH. Also, Bitcoin and its two forks Bitcoin Cash and Bitcoin SV, as well as the XRP token, entered the top 5 cryptocurrencies in terms of capitalization. At the same time, ether became the absolute leader in terms of queries in the Google search engine. Google Trends data shows that 75% of cryptocurrency searches were for ETH and only 25% were for BTC. This indicates that the crypto community has shown and continues to show increased interest in the ether token, despite the fact that the third halving took place this year. Bitcoin halving halving the number of new coins created and earned by miners. This happens approximately every four years and … More bitcoin.

In addition, after its collapse in March 2020, the ETH token showed a rapid recovery and growth in value..

“Unfortunately, COVID-19 marked the beginning of the collapse of the cryptocurrency market, which neutralized the growth of all assets. However, both ETH (+ 75%) and BTC (+ 27%) recovered quickly from the crash and both have approached their annual highs in recent months. XRP token (-9%) is another story. At the beginning of the year, the token showed strong growth, but after the market crash, interest in XRP seems to have died, as XRP disappointed everyone, “- said in a report from Arcane Reserch..

In addition, small-cap altcoins have shown a significant breakthrough in the cryptocurrency market. After the crash on March 12, 2020, the capitalization of small altcoins increased by 141%. This is more than BTC and all its forks together. Such rapid progress may indicate the advent of the era of altcoins..

Bitcoin loses to small-cap altcoins

Earlier, BeInCrypto reported that VeChain (VET) has gained 50% since May 22 after breaking the long-term downside resistance line. The dynamics of TRX is similar to the movements of the VET token, which makes it possible to predict a similar rise in quotations.

Low Cap Altcoin Gems with 1000x potential

Altcoins will not hold up against BTC

 

Not all experts share the optimistic sentiment around altcoins. Earlier, the crypto-whale and the crypto-millionaire stated that the growth of bitcoin will just be preceded by the dying off of shitcoin, which he calls 90% of all currently existing projects. Bitcoin still maintains its dominance in the market. With the rise in the price of bitcoin (which happened in 2017), investors begin to actively pour money into other cryptocurrencies, which can reduce the level of dominance of the main asset. Before the halving of 2020, this figure was at 69-70%, but soon dropped to 67%.

Despite the fact that with the rise in the price of bitcoin, interest in other cryptocurrencies also increases, this factor alone is not enough to reduce their dependence on the main cryptocurrency. A high correlation indicates that they themselves are of less value to investors. The decrease in the dominance of bitcoin is more likely associated with significant changes in the development of altcoins themselves, the conclusion of new partnerships that increase their value in the cryptocurrency market. If, after the second halving, the alt season was largely facilitated by the belief of users in the promising and huge possibilities of cryptocurrency technologies, then today significant breakthroughs in the projects themselves are needed. But it should be noted that the growth of altcoins began a year after the second halving, so if this scenario repeats, many cryptocurrencies still have time to prove their worth..

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Bitcoin loses to small-cap altcoins

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Bitcoin loses to small-cap altcoins
Bitcoin loses to small-cap altcoins

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