Although Bitcoin dominance has decreased over the last year, it still retains its position as one of the most valuable cryptocurrencies in circulation. However, during December’s correction, this trend was interrupted with a sudden rise that returned BTC to being less popular than before while other coins such Ethereum or Ripple experienced major spikes too!
Bitcoin’s dominance has declined by nearly half since December 2020. It must be noted, however, that Bitcoin still dominates in terms of market capitalization – standing at around $930 billion compared to Ethereum’s current value at $130 billion and Ripple XRP reaching just under the $300 million mark (at press time).
The recent enthusiasm for alternative coins, particularly those that are privacy-focused or have an interesting development story behind them has helped contribute to Bitcoin’s falling prices.
The crypto market is enjoying an exciting year so far with many coins up significantly over Bitcoin’s 70% rise. Binance Coin (BNB), Cardano(ADA) Solana, and SHIB have all had great performances this calendar year compared to the steep increase seen last month while others such as DOGE or Stratis are also showing promising gains.
Speaking on the current state of Bitcoin and the general crypto market, CTO at Bitfinex, Paolo Ardoino, says, “Fear has gripped the digital token space amid speculation that we might still see further falls in the bitcoin price. While the speculative nature of the ecosystem remains front and center in the headspace of many participants, huge leaps have been made in the underlying infrastructure and payment processes.”
Ardoino adds, “The Lightning Network arguably represents DeFi in its truest form. Unlike many of the non-bitcoin chains that often have a speculative component based upon the appreciation of a protocol’s token, the Lightning Network is all about payments and building services.”
Bitcoin vs Ethereum
Bitcoin and Ethereum have very different visions when it comes to future technology. One, the father of cryptocurrency; is all about currency while another seeks out new ways in which people can store their digital assets securely with little friction or risk from centralized parties like banks.
In recent years there has been much talk within both industries as well as outside them about how these two coins Contrasting approaches yield contrasting results But what does this mean for investors?
In the face of adversity, Ethereum is flourishing. In recent weeks as Bitcoin’s price has struggled to maintain its dominance on cryptocurrency markets; nonetheless, an all-time high was reached for one of their competitors in particular – Etherum (ETH). This represents another feather under this wavered bird logo as it continues onward towards greater heights!
It’s not just bitcoins that are worth considering anymore. The world’s second most valuable digital asset now accounts for 22% of the overall value in cryptocurrencies!
The difference between Bitcoin’s and Ethereum’s market capitalizations has declined gradually in 2021. Now, it is only $400 billion away from BTC’s value – which means that one day soon we could be looking at a situation where both coins are worth over 100% more than their current prices.
The crypto market sell-off has calmed down in the last several days, but it’s not quite over yet. Santiment said, “In the closing hours of Tuesday’s trading, Bitcoin encouragingly had the largest difference between exchange outflows and inflows since late October. Since Sunday, there has been a net outflow of 40,995 BTC, implying lowering exchange selloff risk.”