The recent Wallstreetbets occasion reminded us the importance of solid projects which are undervalued or deliberately pushed down by some parties. From my point of view, the increase in the price of GameStop and the other shares should not be solely examined in terms of the price valuations. People eventually came up with the idea that each asset represents a specific business model or fundamental and it's not fair to compare assets regardless of their objectives.
During the pandemic, no one could expect $Gamestop or a similar business model to make revenue as before. However, it's quite problematic to "manipulate" the price due to that case. Realizing this unfair pressure on the stock, the Reddit guys ( wallstreetbets group) raised their voice against it. If someone reviews the case based on the price, then it's likely to miss the crucial point...
The Case of Crypto | Basic Similarities
Total market capitulations show that Bitcoin has %61-63 market dominance these days. However, It's quite rare to find anyone talking about the other top coins and their domination levels.
Excluding Bitcoin, the Top 10 coins have %25,7 market domination while the rest of the coins have ~ %13 at all. If you are familiar with the coins, we can easily remember the huge pumps that most of the coins. However, do you think Bitcoin Cash and Ethereum could reach their intrinsic value?
Or are you satisfied with the current attributed value for both BCH and ETH?
We need to discuss some things...
The Case of Ethereum
From an outer perspective, it may look "logical" to have such percentages of top 10 coins but when you start examining the case, some things are not really normal. What do I mean?
The total domination of Ethereum is basically a quarter of Bitcoin even though the whole hype started thanks to the De-Fi and other financial services. If we consider the new bull-run is mostly initiated thanks to the projects operating on Ethereum, it may not be quite logical for everyone to acknowledge that Ethereum is still seen as in previous years. YET, Ethereum has evolved into a whole new universe...
The dominance shows that Ethereum is gradually getting more dominance on the market. Yet, do you think Ethereum has reached its intrinsic value?
If we start thinking about the increase in Financial Services in the crypto ecosystem, I can argue the real value of Ethereum. The only things that may have an impact on Ethereum can be the delay of Ethereum 2.0 and the high fees. Other than these reasons, it does not sound rationale for me to accept the current price (or attributed value in other words) for the pioneer of the bull-run in crypto ecosystem.
✓ The new bull-run was triggered with De-Fi and institutional investments.
✓ Ethereum operates nearly the whole De-Fi part of the bull-run.
✓ Ethereum is under development of 2.0 version. (PoS consensus)
Yet, the total domination is still below at least ~ %20. There are 2 reasons that are coming to my mind. Either Ethereum is underrated by crypto enthusiast and the whole investment flew to the De-Fi projects on Ethereum or Ethereum has deliberate selling pressure on it. In either circumstance, the price does not reflect the value that Ethereum has in reality.
The Case of Bitcoin Cash
The case of Bitcoin Cash is even more hilarious. As everyone knows, the ideology of Bitcoin Cash is to enable people to use the cryptocurrency in their daily lives, peer-to-peer; without any middle man, in the market, on the net; anywhere and anytime without incredible fees.
The mindset is quite clear and comprehensible, isn't it?
What if it's happening? What if the adaption of Bitcoin Cash is happening but the price (not just the aspect of money but the point of attributed value by people) is not following the realization of the major aim?
Sadly though, the situation is exactly what I mentioned. I'll show you 2 basic charts for inquiry on them.
Here is the first chart showing the daily transactions on Bitcoin Cash blockchain. Do you want me to point the increase on the chart? Well, I do not think so...
Yeah there is an increase but let's talk about the match between the fundamental of Bitcoin Cash and the increase:
Are these transactions peer-to-peer? ✓
Are these transactions conducted with lower than 0.0xx fee? ✓
Are these transactions operated on-chain? ✓
Are they happening in daily use? ✓
So, there is a problem but I do not think it's related to blockchain. Are you ready to see the chance in the domination?
At that point, I believe that it's becoming more and more clear for everyone. There is an obscure mismatch between the successful operations and the percentage of money flowing to BCH. We need to make some noise about it 😏
We are not supposed to testing lower level in terms of domination while the recent days are bearing the top days of the on-chain operations. Both Read.Cash and Noise.Cash made people realize the basic principles of Bitcoin Cash and I'm pretty sure, the increasing awareness will be visible from the increasing dominance sooner or later.
There are several more detailed charts shared by Marc on Twitter or Youtube and published by Simon on Noise.cash to make people realize. I'm pretty sure crypto enthusiasts are more engaging with the price of BCH as they become one of the stakeholders 😌
Beyond Mass-Adoption | Retail & Institutional Investments
Grayscale, one of the pioneers of institutional gateways, has a special service for Bitcoin Cash. You can learn about the insight of the company against Bitcoin Cash.
Bit.com launches Bitcoin Cash Options: News
Final Words:
It's not logical to compare the digital assets based on their current prices. Once people neglect the fundamental and technical sides of the project, then it turns into gambling but for investment.
In my opinion, in the light of the advancements of the projects, both Bitcoin Cash and Ethereum has not reached the deserved price valuation. The dominance levels are not reflecting the operational developments. The domination represents the percentage that is allocated for the coins. If 100 units of money get into crypto market, only <1 percent for Bitcoin Cash and ~ %15 for Ethereum is not fair.
I expect to see the awakening over the undervalued assets in crypto ecosystem. When wallstreetbets group or any other third party spot the nuance that is mentioned, the market may have more reasonable domination levels for the crypto assets. Until that day, we need to keep raising more awareness.
What is your stance on point? Are BCH and ETH fairly valued?
Considering the domination levels in the cryptomarket, does it look healthy to you?
Thank you for reading.
Regards,
Wall street bets guys if keep on the offensive hold these rich elites responsible you guys are doing a amazing job and will make history. BCH and ripple is gaining value quickly this is great sign for future investors in crypto currency.