The price of Matic is inching towards the 15, 20 & 25 moving averages The yellow lines represent the range between which Matic has been trading since July The expectation is for the price of Matic to drop to 0.76 in the next few days Note: Trading decisions should not be based on the opinion in this article, investors should conduct their own due diligence before buying the cryptocurrency. This article is purely based on my own research and understanding of the cryptocurrency in the article.
Let's Talk About Cryptocurrencies Market Capitalization and Where Most of The Money Is Being Invested?
The cryptocurrency market capitalization has reached a staggering $2.3 Trillion as of 7th May 2021. For comparison sake, the market capitalization is up 151,219% in 7 years. This seems to be just the beginning.
Lately we have been seeing a lot of movement in the cryptocurrency markets, to highlight a few, alternative coins gaining in recent weeks, Bitcoin's market dominance falling to 46.1% and Ethereum gaining traction over Bitcoin.
This has got me thinking, with the drop in Bitcoin dominance are we seeing funds moving from Bitcoin to Ethereum or alternative coins? Let's find out
I conducted a market capitalization study analyzing the following:
- Global cryptocurrency market capitalization
- Bitcoin
- Ethereum
- Cryptocurrencies ranked #2 - #100
The result of the analysis in the form of a chart is given below
The Green arrow shows a divergence between the global market capitalization (in Yellow) and Bitcoin (in Blue), this indicates that versus earlier, Bitcoin is receiving less of the funds being pumped into the crypto markets.
On the other hand, we do see the alternative coins market capitalization picking up steam, mimicking the growth in the global market capitalization. This could mean that more investment is being diverted to alternative coins and Ethereum rather than Bitcoin.
Given the trend between alternative coins and Bitcoin in the graph above, it might not be incorrect to estimate the alternative coin market superseding Bitcoin in terms of market capitalization in a few months time. Would we see investors selling Bitcoin to invest in alternative coins? There might be a possibility.
Furthermore, as the crypto markets mature in the near future, we might see investors staying away from speculative currencies and instead investing in projects or company backs coins similar to a stock market.
The graph below shows the 24 hour trading volume for Bitcoin, Ethereum, Dogecoin and the remaining 97 out of the top 100 crypto coins. The spike in the 24 hour trading volume for alternative currencies (Yellow Line) is clearly visible, this could indicate a growing interest in currencies other than Bitcoin & Dogecoin. It is important to note that due to the sheer price of bitcoin, the trading activity remains low, however the chart below can still be used as a reference to gauge the market interest in the coins.
Overall the growing interest in alternative coins cannot be ignored and with the increasing volatility in speculative currencies like Bitcoin & Dogecoin, we could see an investment shift from speculative to stable coins in the near future.
To stay updated with the latest cryptocurrency analysis make sure to follow our blog.
Note: Trading decisions should not be based on the opinion in this article, investors should conduct their own due diligence before buying the cryptocurrency. This article is purely based on my own research and understanding of the cryptocurrency in the article.
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