Bitcoin dominance in the crypto market seems to be crashing down big time this year. As per the data from CMC, BTC’s share of entire crypto market has plunged down to a record low of below 51 percent mark. It’s definitely a cause of concern for BTC investors and traders since the present declining effect is persisting now for months, not just for a few hours. And with BTC slouching, alt coins seem to be moving ahead.
As per leading crypto expert & founder of The Currency Analytics Sydney Ifergan, Bitcoin fell down to 50.54 on 17th March and has had declined further since then. Now, a decline in BTC share is nothing new. The default currency for crypto trades rose to 90% in the first quarter of 2017 year fell down to something like 37.7% in the final quarter of that year only. But Bitcoin was able to pick up pace in the middle of 2018. Mr. Ifergan stressed that BTC rises during bearish trends. A declining market pushes traders to default virtual currency to be on the safe side.
In the final quarter of the last year, BTC was actually “struggling” to scale up to $14,000 to $16,000 and stay put at that rate. However, by the 31st of December, it could only manage to rise up to $12,350. At present, the BTC rate is hovering around something like $13,000 and it may decline further.
However, the decreasing dominance of Bitcoin is leading to increasing trust and adoption of altcoins like Litecoin, Ripple, Ethereum, Bitcoin SV, Bitcoin Cash and so on. As Bitcoin fell down to further 2 percent last week (from its standing in the first quarter of the year)- Bitcin SV has been up to over 140 percent. You can expect the same positive state Litecoin and Ethereum as now they are up over 36 percent and 22 percent respectively. Mention must be made of Ripple which recently bagged the second position in the market, replacing Ethereum. The coin has impressed the crypto market with a surprising 330-fold growth. On the other hand, Ethereum and Litecoin too have been up by 50-fold minimum of late.
According to Mr. Ifergan and many other crypto pundits, a major reason behind the decline of BTC today is its exorbitant transaction fees. Such pricey charges make it quite a challenge to use BTC for diminutive payments. On the other hands, altcoins like BCH or Ethereum or Litecoin don’t demand such spiked rates and it’s way easier to use them for various small payments.