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Bitcoin remains the best alternative to altcoins, but its market share is rapidly declining, analysts say
Bitcoin’s market share has declined significantly and remains well below the 2020 average. Analysts from Kaiko reported this on their blog. Despite the fact that in recent months, against the backdrop of macroeconomic volatility, Bitcoin has surpassed most altcoins, the leading cryptocurrency by capitalization is rapidly losing its market share.
Source: kaiko.com
As you can see in the chart above, the share of altcoins (excluding ether) has grown from 23% to 71% in two years. The selection took into account all trading pairs on Binance, Coinbase, Kraken and Gemini. However, regardless of the drop in share, bitcoin (BTC) and ether (ETH) remain the most liquid crypto assets offering an easy entry point to the market, Kaiko admits.
Source: kaiko.com
However, over the past few months, the situation has begun to change for assets paired with USDT on Binance, analysts say. In particular, Kaiko noticed that since December 2021, spreads for terra (LUNA) have halved, and for avalanche (AVAX) and fantom (FTM) – by a basis point. Solana (SOL) spreads remained relatively unchanged.
At the time of writing, Bitcoin has significantly lost ground, forming a bearish candle. The cryptocurrency in the BTC/USD pair sank from a high of $47,200 to a low of $40,128. In addition to the price decline, Bitcoin is also seeing a drop in trading volumes on decentralized platforms. For example, in March, Uniswap’s trading volume dropped so much that it reached lows that the platform had not seen since September 2021.
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