- Priced at 26,684 dollars, Bitcoin has surged up and is back in the spotlight
- Bitcoin currently acquires more than 50% of the market cap of approximately $520 Billion.
- Altcoins like Ethereum, XRP and BNB are currently underperforming.
As of the recent trend, Bitcoin, the first and original cryptocurrency, claims its dominant position back in the domain of the digital asset marketplace as it has acquired more than half of the total crypto market capitalization. Altcoins struggle to keep up in performance compared to Bitcoin.
Bitcoin’s Recent Increase In Market Dominance
Bitcoin has always been dominating the whole market like a one-man army when it comes to market capitalization. It has currently shown a resurgence to its habitual position of accumulating more than 50% of the market cap. Ethereum, which is probably the closest competitor to Bitcoin, currently sits uncomfortably priced at 1632.09 dollars, just 1.1% up over the last week.
The same scenario and trend have been observed in other Altcoins like BNB and XRP. However, one odd one out of Altcoin has been the lesser-known Toncoin. Toncoin has experienced drastic and dramatic price swings and has flown against the tide of other prominent Altcoins. Toncoin can still not uplift the underperforming Altcoins as it occupies a much smaller portion of the whole market.
History suggests that the bearish market favors Bitcoin and propels it to spike up more than often. It has been evident on numerous occasions that a bearish climate stimulates and blossoms up Bitcoin and acts as a haven for this significant and first-ever cryptocurrency. However, it is to be noted that even after this escalation, Bitcoin is still way down from its prime level.
Key Differences Between Bitcoin And Altcoins
When it comes to technological aspects, Bitcoin focuses more on being a decentralized digital currency. Altcoins, on the other hand, are more welcoming towards incorporating new technologies and functionalities into their framework, which goes beyond simple transactions. Altcoin acceptance in the creation of smart contracts is one of the prominent examples.
Well, it is downright true that cryptocurrencies are susceptible to volatility. So it’s inevitable that both bitcoins and altcoins can be influenced intensively by price volatility and drastic fluctuations. However, Bitcoin’s sheer dominance in market capitalization and its widespread adoption enable it to be less volatile than altcoins.
Bitcoin has become less volatile with time and its reputation for being well-established and recognized encourages its widespread adoption over Altcoin. There is a lower risk with a Bitcoin investment than with an altcoin. On the other hand, while Altcoin might not be even close to Bitcoin’s stability, it possesses potential that can lead to high returns.
There is no conclusive answer as to which is better between Bitcoin and Altcoins but recent trends suggest the escalation of Bitcoin might yield fruitful and lucrative results for its investors. However, experts suggest that the 50% plus market capitalization can soon reach the 60% plus level for Bitcoin, so it won’t be a bad idea to hold user horses for a little bit more in case one is an esteemed investor in Bitcoin.