After bitcoin, there are four altcoins (Ethereum +119%,ripple +58%,bitcoin cash +109% and bitcoin SV +222%) that are the top cryptocurrencies on the market, representing an overall market capitalization of US$ 51 billion (the value of each coin multiplied by the number of coins on the market). Compared with the US$178 billion market cap of Bitcoin, this is still fairly small, but the difference has obviously been narrowing.
In terms of blockchain supremacy, blockchain enthusiasts equate Bitcoin and Altcoins. Compared to the majority of the altcoins grouped together this corresponds to bitcoin's market cap. It dropped marginally from 68 per cent to 64 per cent during the early weeks of 2020.
A statistically meaningful association between bitcoin success and altcoins has continued to occur for years: as bitcoin increases or falls in price, most altcoins tend to do the same. Using online resources, like Coinpredictor.io, you can track this.
Despite this correlation, after the previous bull market petered out in winter 2017-18, altcoin has continued to underperform bitcoin. At the start of 2018, Bitcoin supremacy was just 39 percent, while by July 2019 it had grown to 70 percent and remained in that range for much of the rest of the year.
Interesting Right?
The Rise of Altcoins
A growing number of coins entering the market could also be partially driving the growth of altcoins. It now counts over 5,000, staggeringly, according to coinmarketcap. All other factors are equivalent, this may decrease the supremacy of bitcoin, which can feed through, now that trust in the market as a whole has improved.
Other scholars also found out that the market connection between Bitcoin and altcoins decreased throughout 2019. Since several other blockchain ventures struggled to live up to the heated hopes of a year or two ago, investors may have sold them in a "flight to quality" for bitcoin—a little like regular investors moving to gold when the equity market dives.
A tough question to answer is whether such altcoins will manage to outperform their bitcoin matriarch, but they show promising signs of existence. Sceptics who foresaw their eventual downfall may have talked too easily.
What altcoins are you investing in currently and how is it going?
My favourite right now is BCH, mainly because of manageable fees, quick transfers and it's reliability due to the ability of the network to run without congestion, and is scalable to handle further demand in the future.
This was a great and easy read. Thank you for writing this informative article. The Alt Coins I am currently investing in are XLM, XRP, and CRO.