Bitcoin has steamrolled the rest of the coin industry in recent months and has become ever so dominant. The largest cryptocurrency by volume increased its share and has consistently held over 65% of the entire market share. However, Coinbase’s user data shows that all is not lost for the Altcoin industry and it may continue to be relevant despite the Bitcoin’s dominating performance in recent months.
Previously, Bitcoin went as low as 44% at one point during last two years, however, with the anticipation around the halving, Bitcoin has cemented its place in the near past and the altcoins including the very top ones after Bitcoin like Ethereum, Bitcoin Cash, Ripple (XRP), litecoin and others have performed poorly. Almost all of the Altcoin/BTC pairs are in negative territory percentage wise and the way forward is filled with doubts and uncertainties regarding the sector that saw unprecedented growth between 2017 and 2019.
However, Coinbase, one of the world’s largest cryptocurrency exchanges recently released data that showed that a vast majority of crypto traders are still interested in altcoins despite the recent setbacks. According to a blog post from the exchange’s website, the asset preference for users is as follows:
According to this graph, more than 76% percent of the users with at least 5 purchases on coinbase.com eventually turn to Altcoin buying. However, this data is from 2019-2020 and during this time, interest in altcoins was considerable due to their better showings. However, with Bitcoin now back in full swing, the resilience of Altcoin traders may be tested further. Furthermore, Coinbase is not known for heavy trading in altcoins as it is known for having a limited options to choose from due to a tough vetting process. However, the data is still encouraging for the industry overall.
The dominance of Bitcoin over the rest of the industry is not a bad thing. While many of these platforms derive from Bitcoin itself, they failed to become what makes Bitcoin great in efforts to differentiate themselves from it. Bitcoin is still one of the only networks that doesn’t rely on supernodes and other centralization-in-disguise moves. However, the Altcoin industry has brought in a lot of innovation in the sector that needs to continue for the overall growth.
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