Before the New Year, on December 28 and December 30, the whole crypto market experienced a potent plunge, when the total market capitalization dropped to $539.7 billion and $546,8 respectively. At that moment, the price of almost all crypto coins was decreasing, except Neo, Qtum, and Cardano within the top-20 coins, which demonstrated an increase of more than by 10%.
After struggling to increase to $14,000-16,000 and fix at that rate, the most known cryptocurrency bitcoin in value to $12,350 on the New Year Eve. As the data from the CoinMarketCap shows, bitcoin has been very unstable within the past two weeks after it broke a historical record of $20,000 in the middle of December after the bitcoin-based futures were launched for trading on CME and faced a pullback in a value of 32% within just a day.
Currently, it seems that bitcoin has hardened at the price of over $13,000, but there is another issue, however. Bitcoin has broken another anti-record as its dominance index has decreased to the unsurpassed nadir of 35.86% on January 2 (at the moment of writing), whereas altcoins increased in value. The previous bitcoin’s anti-record in this index, which measures the dominance of bitcoin over the worldwide crypto market, occurred in June 2017, reaching only 37.29%.
Bitcoin’s Another Failure?
Above all, the dominance index of bitcoin has fallen from 90% at the beginning of 2017 to 37.7% by the end of the year, given to the increasing praise of altcoins. For instance, Ripple, which has recently usurped ethereum’s second position in the list of crypto coins, has displayed an impressive 330-fold growth in value. Meanwhile, such promising crypto coins as Litecoin and Ethereum have increased by minimum 50-fold in the frames of the past year.
Perhaps, the expansion of altcoins’ adoption has been stimulated by bitcoin’s soaring transaction fees. As some experts emphasize, e.g., Erik Voorhees, the CEO at ShapeShift, it has become troublesome to conduct diminutive payments using the popular cryptocurrency.
“Fellow Bitcoiners, are you ever going to realize how problematic these fees are getting? Average fees now over $40 per transaction. A year ago avg fee was $4. A year prior, $0.40. Growing faster than price, and exponentially with usage. We just spent $4800 to move 15 BTC in one transaction,” noted Voorhees in his Twitter.
Referring to a comment from a participant of the bitcoin network, the expert mentioned that it’s much easier to use altcoins for small payments. “Like Litecoin, Dash, ETH or BCH… chains that still work as peer to peer electronic cash systems,” Voorhees said.
Not Everything is So Bad
According to CCN, bitcoin continues to be the most liquid and largest digital coin on the crypto market given its user and developer activity. Currently, bitcoin’s total market capitalization makes up over $232 billion. At the same time, its everyday trading volume reaches over $10 billion.
Moreover, some credible investors alluded that the value of bitcoin could overcome $50,000 in 2018 as if it’s a piece of cake. For example, billionaire hedge fund manager Mike Novogratz even suggested that the total market cap of bitcoin will reach $1 trillion.
Nevertheless, experts keep being quite affirmative concerning bitcoin’s destiny in 2018, primarily, in view of its support by the most prominent financial institutions in the world. In particular, it comes to the Chicago Board Options Exchange (Cboe) and the New York Stock Exchange (NYSE), which, as it seems, are going to offer individual investors an up-to-date platform for piling into bitcoin. For that, they have filed for six bitcoin exchange-traded funds (ETFs) .
Altcoins On The Stage
Interestingly, the piggyback market value of top-5 cryptos has overcome the cap of bitcoin, which is happening for the first time in history. In particular, the combined total market capitalization of Cardano, Bitcoin Cash, Ethereum, and Ripple makes up around $238. This is $6 billion surpassing the overall market cap of bitcoin.
Within the following few months, billions of dollars are expected to flux into the market of the most popular crypto coin. Therefore, some specialists remain optimistic about bitcoin. However, the others have begun to consider the durable increase of altcoins, particularly, anonymous digital coins and auxiliary tokens which hold a lot of potentials.
Charts Source: coinmarketcap.com