Jan 7, 2019 11:23 UTC
Jan 7, 2019 at 11:24 UTC
Is Altcoin Domination on the Cards?
Data from the cryptocurrency price tracker CoinLib has shown Bitcoin’s dominance dropping below 50 per cent. This trend has repeated itself for the second time in the last 30 days.
If you look back in time, then you will see that a drop in the domination of Bitcoin has always been the harbinger of an oncoming rally in the prices of altcoins.
Such a rally in altcoins can be explained by one of the two things- either Bitcoin being sold off is being converted into fiat currency, or it is being traded for other altcoins.
This is exactly what appears to be happening at the moment.
In early 2017, when altcoins were witnessing a never-before rally, the dominance of Bitcoin had reduced by as much as 50 per cent in less than half a year.
The next 6 months experienced Bitcoin’s dominance rising to as much as 60 per cent. Subsequently, it is interesting to note that the dominance of Bitcoin dropped 30 per cent again during the bull run of December 2017. During this very time period, altcoins had given investors huge profits.
2018 was highlighted by a bear market trend which led to a dip in the value of the entire cryptocurrency market.
Very few altcoins were able to make gains during the time period of April 2018. At the same time, the dominance of Bitcoin had started declining. Subsequently, Bitcoin clawed back to reach the level of 50 per cent dominance, and ever since August 2018, Bitcoin has been able to maintain its level of dominance.
Now, however, Bitcoin’s 50 per cent dominance is being tested again and again. The regained interest in the Ethereum network also points towards an impending rally in the prices of altcoins. Interestingly, Ethereum is the platform behind a large number of altcoins which are based on the ERC- 20 token standard.
At the time of writing this news, Litecoin was trading up 2.89% at the price of USD 33.35. Among the top ten cryptocurrencies by market capitalization, Stellar, which ranks at number 6th, was trading up 0.21% at the price of USD 0.114578.