Bitcoin’s market cap share among cryptocurrencies may be falling, but its price remains at all-time highs. Is this a cause for concern, or simply a sign the crypto economy is growing in general?
Signs that Bitcoin’s share of the overall cryptocurrency market cap fell to around 60% caused hand-wringing online. Both “sides” in the great scaling debate blamed community discord for the drop — and also each other.
With no end in sight to the rivalries over scaling models, this could cause bitcoin to fall even further. If, that is, the issue is actually to blame. At the same time, one BTC is worth $1,370 (at time of writing). In any other circumstance that would be a huge vote of confidence.
So what is happening? Is a falling market cap share a sign of dissatisfaction with Bitcoin? Or confidence in other projects? After all, many altcoins, payment and contract networks have matured after existing for over three years.
However as a means of payment, Bitcoin still dominates. While other tokens are popular with traders and their own user communities, it’s Bitcoin that has the largest technology infrastructure and name recognition.
On the other hand, neither Bitcoin nor its community has any “right” to a massive market share. And with the price still surpassing expectations, only a few are complaining.
Other Crypto Projects Continue to Grow
Coincap.io now lists 12 cryptocurrencies with market caps above $100 million USD (including Ripple XRP). The #2 most-valued is Ethereum’s ether which is also worth $7.3 billion overall.
Even Ethereum’s own rival, Ethereum Classic ETC, had a market cap of $600 million just yesterday.
Dash and Monero continue to grow as users experiment with their privacy features. And it’s possible Litecoin is gaining some Bitcoin speculators with miners more willing to show support for improvements like SegWit.
Certainly anyone who invested in Top 10 altcoins and other tokens a year ago would be happy with their decision.
Is Bitcoin’s Share Falling, or Are Others Rising?
Some commentators have claimed that Bitcoin’s market cap would be much higher if its community could agree on future plans. However that opinion remains speculative and hard to prove.
Exchanges adding these tokens to their list of trading options presents a chicken-and-egg scenario. Are they popular because traders demanded their inclusion? Or did their mere inclusion prompt their popularity?
If their value is still based mainly on traders’ speculation, they might be more like new casino games or a stock bubble. In the end, it could be all these reasons — part gambling, part confidence in their growing ecosystems.
For now, at least, the pool seems to be big enough for everyone. Those are also, as they say, famous last words.
Is Bitcoin actually becoming less popular? Let us know your opinions.
Images via Pixabay, CoinCap.io