Značka: altcoins

FTX collapse followed by an uptick in stablecoin inflows and DEX activity

On-chain data from Glassnode show Bitcoin’s (BTC) movements hit a new record for the largest net decline in aggregate BTC balances on exchanges, reducing by 72,900 BTC in one week. A similar movement occurred in April 2020, November 2020 and June 2022 with the current outflow leaving around 2.25 million BTC on exchanges. Bitcoin exchange balances with net position change line. Source: GlassnodeExchange exodus for Ether, but not stablecoinsWhile Ether (ETH) did not see an all-time high outflow from exchanges, 1.1 million Ether were withdrawn from exchanges over the last week. According to Glassnode, this marks the largest 30-day exchange balance decline since September 2020 during the DeFi summer in the same year. Ether exchange net position change. Source: GlassnodeRelated: Exchange outflows hit historic highs as Bitcoin investors self-custodyContrary to Bitcoin and Ether’s declining balances on exchanges, stablecoins balances remain net positive on exchanges, meaning their balances are growing. Over $1.04 billion in USDT, USDC, BUSD and DAI moved to exchanges on Nov. 10. This marks Nov. 10 as the seventh largest stablecoin inflow to exchanges. Stablecoins exchange net volume. Source: GlassnodeAccording to Glassnode, with the major influx of stablecoins to exchanges, the current $41.186 billion total is an all-time high. Stablecoins on exchanges. Source: GlassnodeBitcoin miners continue to sell Bitcoin miners continue to remain under extreme pressure and data highlights that hash prices are at all-time lows. The record-low hash prices led to miners selling around 9.5% of their treasuries which is around 7.76 million BTC. This sell-off marks the sharpest monthly decline for miner balances since September 2018. Bitcoin miner balances. Source: GlassnodeDecentralized and centralized altcoin performanceUtilizing asset basked to analyze performance between decentralized exchange (DEX) and centralized exchange (CEX) tokens, Delphi digital found that when comparing the basket prices to BTC, the DEX basket had gained 24% whereas the CEX basket is down 2%. CEX and DEX basket performance. Source: Delphi DigitalGenerally, the on-chain activity correlates to overall Bitcoin, Ether and altcoin market sentiment with the current FTX chaos catalyzing historic exchange outflows and CEX tokens’ underperformance. A likely trend to emerge from the current chaos is a steady uptick in self-custodied cryptocurrencies and an increase in DEX use. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Nonfungible airdrops: Could NFA become the next big acronym in the crypto space?

Airdrops have become the bread and butter of the crypto world — for good reason.They’re an indispensable marketing tool for up-and-coming projects that want to create a buzz around their ecosystems.Done right, distributing free tokens to the public can help elevate demand — and unlock big benefits for recipients. After all, if these altcoins end up being listed on major exchanges at a later date, their value could explode.Unfortunately though, downsides have started to emerge. These campaigns aren’t just reaching enthusiasts who passionately believe in what a project has to offer, but “airdrop hunters” who are merely scouring for ways to turn a quick profit.Airdrop hunters typically want to sell off the tokens they’ve received for free — as soon as they can. And for cryptocurrency projects at their very early stages, this can be bad news — undermining carefully cultivated tokenomics and causing the value of a coin to fall.The current bear market has also unearthed another problem. Many projects are now postponing the schedules for unlocking new tokens — waiting until the economic climate improves slightly. And while this is usually in the best interests of a project and their investors in the long run, it can be disappointing news for those who won tokens in an airdrop. Why? Because they’re no longer able to freely trade or liquidate the digital assets they’re entitled to.So… what’s the answer? Can airdrops be revitalized, eliminating some of the downsides that have emerged in recent years? And is there a way for hodlers to benefit — even if they haven’t got their hands on tokens just yet?How NFTs can shake up airdropsRight now, projects are attempting to walk this tightrope between gaining publicity and engaging in marketing strategies that could damage their ecosystems. How can you get new users to follow a Telegram or Twitter account in order to be eligible for an airdrop, and incentivize them to stay involved with the community long term?Nonfungible airdrops — otherwise known as NFAs — could be the answer here. And, as you might expect, they incorporate some of the technology relied upon by NFTs to generate a “win-win” situation for projects and airdrop winners alike.NFAs aim to represent the true value of an airdrop reward when an initial DEX offering (otherwise known as an IDO) takes place. This is achieved through a model that’s not too dissimilar to a futures contract — an agreement to buy or sell assets that will be activated at a future date.The only difference is that the project owner releasing the NFA makes a promise to deliver the token or other digital assets on a future launch date. And as each airdrop winner ends up receiving different rewards under this model, there’s a one-of-a-kind gift that’s nonfungible.In this scenario, the nonfungible airdrop will boast a mechanism that allows holders to claim their tokens when a project launches — in effect, capturing the value of future tokens. Alternatively, it is possible to achieve instant returns by trading this NFA on a peer-to-peer marketplace. What makes this concept so compelling is that those who opt for an immediate transaction will miss out on perks in the long run.Nonfungible airdrops can be equipped with exclusive avatars and special benefits, such as discounts and free trials on the goods and services offered by a crypto project. Holders could also be granted exclusive early access to future features — and better still, their tokens will be waiting for them when they launch.Have your cake and eat itArken Finance says it is the mastermind of the world’s first nonfungible airdrop, a concept that has the potential to shake up the DeFi landscape immeasurably.The DeFi trading portal can be found across eight networks — and its goal is to arm investors with a greater number of trading tools, all while reducing friction.Arken had commenced an airdrop campaign back in November 2021, but this was postponed as the markets began to cool. Now, it’s pioneered NFAs as a way of igniting excitement about its future plans without falling into the common pitfalls of airdrops that have surfaced.Now, 2,000 winners of its trading competition have been rewarded with their very own NFA — each storing a different amount of tokens, and each with different benefits. They’ll be able to reclaim this cryptocurrency at a later date, but there’s plenty of exclusive advantages to keep them occupied in the meantime.”The team strongly believes in this application and is confident that this technology can be marketed to DeFi project owners in the future,” Arken said in a recent blog post.And while enthusiasts may have missed out on the chance to own one of the first-ever NFAs during the initial airdrop, the project says subsequent rounds are planned in the future.Some of the perks include an exemption from fees for the first 24 hours of a trading competition — and NFA holders will have their own special tier in the contest. On this mini-competitive track, they’ll subsequently be entitled to separate rewards. In addition, exclusive insights and fast-lane customer support is provided through a VIP Discord channel, and owners will have a front-row seat to the premium features that Arken Finance has in the pipeline.It’s a bold experiment, and one that could unleash new levels of loyalty in crypto projects that are getting off the ground for the first time. And for those who win airdrops, it delivers far more than tokens. Not only will they have a status symbol in the form of distinctive avatars that few members of the community own, but they’ll get an enhanced experience through VIP channels and front-of-the-line customer support. For those who really believe in a project’s potential, that’s gold dust in itself.There’s excitement as Arken Finance’s cutting-edge experiment continues — and the project’s hoping that “NFA” will be the next acronym to become prolific in cryptocurrency circles.Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

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Robinhood makes significant strides in crypto business in Q1 despite falling revenue

On April 28, discount-brokerage platform Robinhood published its financial results for the first quarter of 2022. Year-over-year, the firm’s net revenue declined by 43% to $299 million. Specifically, revenue from cryptocurrency trading fell by 39% to $54 million during the same period. This was partly due to a decrease in the interest in meme stocks as well as an ongoing cryptocurrency bear market that dominated much of the first three months of the year.However, despite a decrease in sales, the company’s net cumulative funded accounts rose by 27% year-over-year to 22.8 million. At the same time, total assets under custody increased 15% to $93.1 billion. Robinhood took several important steps in enhancing its crypto business. First, the firm rolled out crypto wallets to the approximately two million waitlisted customers in early April, with a full roll-out completed this week.Then, in response to customer requests, Robinhood listed four new coins; Compound (COMP), Polygon (MATIC), Solana (SOL) and Shiba Inu (SHIB). Finally, Robinhood plans to integrate with layer-2 Bitcoin (BTC) payment protocol Lightning Network for faster transactions with lower fees. As told by Robinhood:”Once fully integrated, we expect the service to help accelerate Robinhood’s ability to serve Bitcoin remittances on a global scale — at virtually no cost — and will be important for international expansion.”This month, Robinhood signed an agreement to acquire Ziglu, a U.K.-based electronic money institution and crypto firm, as part of its roadmap. Robinhood plans to leverage Ziglu’s team of financial services and crypto experts to help the company expand across the United Kingdom and Europe.

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Institutional investment flows out of ETH and into competing L1 altcoins

Institutional investors have shifted their attention from Ethereum (ETH) to competing Layer 1 blockchains of late, with capital inflows for altcoin investment products increasing last week whilst Ether products posted outflows for the third week in a row.Data from CoinShares’ latest Digital Asset Fund Flows report shows that investors last week (ending April 22) loaded up on $3.5 million worth of Avalanche (AVAX), Solana (SOL), Terra (LUNA) and Algorand (ALGO) funds whilst capital outflows from Ether products totaled $16.9 million.It marks the third straight week that Ethereum products have seen outflows, bringing the total over that time to $59.3 million, equal to around 35% of the year-to-date outflows of $169 million from the second-largest blockchain.Notably, investors also favored digital gold last week despite some recent hesitancy, with Bitcoin (BTC) products fetching $2.6 million worth of inflows.Over the past 10 weeks, inflows to Ethereum products have reached only $68.5 million in what could signal a bearish trend by institutions towards the major blockchain.Weekly flows showing $16.9m outflows from Ethereum. CoinShares.Alternate layer 1 blockchains have been growing in popularity recently, decentralized application (dApp) usage on Solana in the last 7 days has increased according to metrics from DappRadar. Usage for the decentralized exchange Orca has grown nearly 43% over the week, and automated market maker Raydium has seen a 15.5% increase, with volume in its app reaching over $1.5 billion.Whilst the metrics for Avalanche’s dApp usage haven’t increased over the week, the blockchains’ investments in incentive programs and millions spent luring developers to the platform have traders bullish on the future of AVAX.Related: Does the future of DeFi still belong to the Ethereum blockchain?The Avalanche, Solana, Terra and Algorand inflows were $1.8 million, $800,000, $700,000 and $200,000 respectively, whilst Bitcoin saw inflows equating $2.6 million for the first time in two weeks with the analysts noting that month-to-date outflows for the largest crypto remain at $178 million.Total outflows over the past three weeks have seen $219 million leave the market, with that number cooling last week winding down to just 7.2 million, a stark contrast to the $134 million which left the market in the first week of April.Despite the recent run of outflows, the analysts note that year-to-date flows remain positive with $389 million coming into crypto assets since the start of the year.

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How to trade crypto using BTC dominance?

Bitcoin (BTC) is both the first and the most prominent cryptocurrency in the world when it comes to market capitalization as well as trading volume. These factors are quite significant, considering that all cryptocurrencies trade against Bitcoin and Bitcoin’s dominance can actually serve as a valuable indicator when trading all different types of cryptocurrencies.This post will offer insight on how to trade cryptocurrency while utilizing the Bitcoin dominance indicator and how to read the Bitcoin dominance index chart overall.What is the BTC dominance chart?Bitcoin dominance is uncovered by comparing Bitcoin’s market capitalization to the capitalization of the entire crypto market. The higher Bitcoin’s market capitalization the more Bitcoin dominance is at play, and we have the answer to the question: What percentage of the crypto market is Bitcoin?The BTC dominance TradingView chart showcases these numbers in a clear percentage format where one can take a quick glance and understand if BTC dominance is at 40% or 60%, for example.That said, users can also view the Real Bitcoin Dominance Index, which calculates BTC dominance only against proof-of-work (PoW) coins aiming to become a form of money.The logic behind the Real Bitcoin Dominance Index is that many altcoins such as stablecoins aren’t aiming to compete with Bitcoin and, so, it may paint a more realistic long-term view on Bitcoin’s dominance.This indicator even gives users the option to exclude Ethereum, as it’s debatable whether or not Ether (ETH) is meant to be a currency rather than a utility token.How does BTC dominance affect altcoins?BTC dominance can directly affect altcoins, as it showcases how much of the market’s trading volume is in BTC vs. how much of the trading volume is in altcoins.Generally, if Bitcoin dominance is up, then traders recommend one has more of their crypto holdings in BTC than in altcoins. If BTC dominance is down, traders recommend one holds more altcoins than they do Bitcoin.While it’s wrong to say Bitcoin dominance is an exact representation of a bear or bull market, there are correlations between these definitions. For example, bull markets might lead to lower BTC dominance, as funds are typically pouring into altcoins at that time.Conversely, bear markets might see higher BTC dominance, as traders may be pulling their funds out of altcoins and putting money into Bitcoin since it’s more of a reliable asset.Some enthusiasts might say that lower Bitcoin dominance is a good thing, as it means the crypto market is expanding and funds are flowing through all sorts of projects instead of just Bitcoin. But, it’s also worth noting that the total crypto market capitalization will take pre-mined and forked coins into its value, meaning altcoin counts might be artificially inflated.One should also consider the fact that Bitcoin dominance can decrease even when the asset’s price increases. This can occur when money is pouring into the crypto market with Bitcoin included, though more money might be moving into altcoins than the world’s largest cryptocurrency.The point is, while Bitcoin dominance might paint the crypto market a certain way on a surface level, there are various factors to consider to gather an informed view.Sometimes dominance might be down due to a short-term altcoin boom while other times, the entire market might be bleeding money. It’s always best to do additional research before making an investment decision.How to trade Bitcoin dominance?There are multiple factors to consider when attempting to trade Bitcoin dominance. First, understand that Bitcoin dominance can go down if interest is high in even one altcoin. This interest in a single altcoin doesn’t mean that every altcoin will experience upward trends. The market may take some time to correct itself.It’s also best to consider the intent of some popular altcoins and whether or not that intent will translate into a lasting impact on the altcoin market. For example, we might see a stablecoin experience a significant uptick in volume for the time being.However, users might invest in said stablecoin simply to move those funds over to Bitcoin, as stablecoins can be an easy way to onramp funds into the crypto industry.As a result of this activity, Bitcoin’s dominance could quickly drop and rebound, impacting short-term trades negatively. Another factor that could lead to unpredictable short-term drops or rises in Bitcoin dominance is fear of missing out (FOMO).New coins enter the crypto market all of the time. Some of these new altcoins entering the market generate a ton of hype that results in hundreds of thousands of dollars flowing into the altcoin side of things and disproportionately lowering Bitcoin’s dominance.However, many new altcoin projects often lose their hype or even end up being a scam, causing users to pull out their holdings as fast as they input them. In that case, Bitcoin’s dominance might rise back to its original place.One should also consider the extremes of Bitcoin’s dominance ratio. For example, Bitcoin’s dominance used to be at over 90% before altcoins entered the market. However, enthusiasts note that Bitcoin’s dominance is unexpected to hit that number again due to the prevalence of altcoins in today’s market. But, it’s impossible to say for sure, as if countries follow El Salvador implement Bitcoin as legal tender BTC’s dominance may rise once again.In fact, Bitcoin’s dominance is much more likely to hit new lows than new highs as altcoin projects continue to gain popularity across the mainstream.As a result, traders should note when Bitcoin dominance is trending toward an all-time high, as that could mark a good threshold in which BTC dominance may see resistance. Conversely, users should keep an eye on BTC dominance reaching toward new lows and how the altcoin market is reacting as a result.What happens when Bitcoin dips?Bitcoin’s price dip could mean a lowered dominance in that users are moving funds away from BTC into other altcoins, but a price dip can also have little to do with dominance as a whole. If Bitcoin dominance drops, users might certainly expect an altcoin bull run and can trade accordingly.That said, a Bitcoin price dip could occur if users are pulling funds out of all cryptocurrencies, resulting in a lower crypto market capitalization overall. In this case, Bitcoin dominance may remain at a certain percentage despite traders’ anticipation of a potential bear market.This example is an essential reminder that Bitcoin dominance shouldn’t be the only tool at a trader’s disposal, rather one of many to examine before making a trade.The impact of a Bitcoin crash on the crypto marketDominance aside, a significant Bitcoin price crash has historically often led to an overall market crash, though few exceptions exist. This correlation between Bitcoin and a market crash is simply because Bitcoin is the world’s first cryptocurrency and all crypto assets trade against it.Look at it this way: If a country considers banning Bitcoin and the price drops significantly as a result, traders and speculators might lose confidence in altcoins as well and pull their funds from these alternative investments.That said, a Bitcoin crash doesn’t always mean an overall market crash. There are multiple occasions where Bitcoin suffers a significant price drop while Ether remains more stable. It’s important to remember that different assets serve different purposes, and the downtrend of one may not correlate to the downtrend of another.In fact, as time goes on and altcoins break into the mainstream consciousness, future Bitcoin crashes might have less and less of an effect on the overall market. Bitcoin dominance matters now because it’s still the most popular cryptocurrency in the world. If other coins begin to take that mantra away from Bitcoin, dominance will matter less and less.

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How to pick or analyze altcoins?

What are altcoins?The word “altcoin” is derived from “alternative” and “coin.” Altcoins refer to all alternatives to Bitcoin. Altcoins are cryptocurrencies that share characteristics with Bitcoin (BTC). For example, Bitcoin and altcoins have a similar basic framework. Altcoins also function like peer-to-peer (P2P) systems and share code, much like Bitcoin.Of course, there are also marked differences between Bitcoin and altcoins. One such difference is the consensus mechanism used by these altcoins to validate transactions or produce blocks. While Bitcoin uses the proof-of-work (PoW) consensus mechanism, altcoins typically use proof-of-stake (PoS). There are different altcoin categories, and they can best be defined by their consensus mechanisms and unique functionalities.Here are the most common types of altcoins:Mining-basedMining-based altcoins use the proof-of-work method, most commonly known as PoW, which allows systems to generate new coins by way of mining. Mining entails solving complex problems to create blocks. Monero (XMR), Litecoin (LTC) and ZCash (ZEC) are all examples of mining-based altcoins. StablecoinsStablecoins aim to reduce the volatility that has marked crypto trading and use since the beginning. The value of stablecoins is, therefore, pegged to the value of a basket of goods, like precious metals, fiat currencies or other cryptocurrencies. The basket serves as a reserve in case the cryptocurrency encounters problems. Dai (DAI), USD Coin (USDC) and Tether (USDT) are all examples of stablecoins. Security tokensTrue to its name, a security token is similar to traditional securities traded in stock markets. They resemble traditional stocks and represent equity, either in the form of ownership or dividends. Security tokens attract investors because of the high probability that their price will appreciate quickly.MemecoinsMemecoins are called such because they represent a silly take on well-known cryptocurrencies. They are typically hyped by celebrities and popular influencers in the crypto space. Popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB), for example, often have their prices driven up by Elon Musk, Tesla’s CEO and well-known crypto enthusiast.Utility tokensUtility tokens are used to provide services like rewards, network fees and purchases within a given network. Utility tokens do not offer equity, unlike security tokens. Filecoin (FIL), for example, is a utility token used to purchase storage on a decentralized storage network. How do you evaluate altcoins?​Altcoin fundamental analysis involves looking at and evaluating all available information on an altcoin. It involves looking at the cryptocurrency’s use cases and its network, as well as the team behind the project, to fully understand and evaluate the best altcoins to buy. When analyzing altcoins, or any cryptocurrency for that matter, the goal is to understand whether the asset in question is overvalued or undervalued. Overvalued assets should be avoided, whereas undervalued assets are more ideal. This is because overvalued assets will likely underperform and dip back to their real value. Undervalued assets, on the other hand, have more potential for growth and are consistently profitable. A thorough analysis will help you make the best decision concerning your investment decisions. Here are some helpful guidelines on how to analyze cryptocurrency before investing:Step 1: Analyze the whitepaper and find the value propositionScrutinizing a token’s whitepaper will provide a lot of relevant information such as its use cases, goals and the team’s vision for the project. The white paper must give you a good picture of how the altcoin will provide value for its users.The value proposition for Bitcoin, for example, is as follows: “a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on a peer-to-peer network without the need for intermediaries.”An altcoin’s value proposition can guide you as you continue to analyze other information about it. Step 2: Look for increasing demand and stable (or decreasing) supplyLooking at supply and demand is one of the best ways to assess your next crypto investment. Now that you’ve gotten a clear picture of how the altcoin adds value to its users, it’s time to look at how it navigates supply and demand.Simply put, the altcoin should have incentives that will facilitate the increase of demand in such a way that supply is continually decreasing or stable. When demand outpaces supply, prices go up, thereby fueling even more demand.To do this, you can access resources like Cointelegraph’s Price Indexes and Market News, as well as Coin 360’s Heatmap and CoinMarketCap.Step 3: Assess the team and stakeholders behind the projectNow that you have a good understanding of what the project can offer, it’s also important to thoroughly assess the team behind the project. You can find information about the team on the project’s white paper, but try to do independent research on them as well. You can check out the official project site’s team page as well as their LinkedIn profiles which they should have made public and accessible to all.Ask the following questions when looking into each member’s background:Have they worked on other reputable and successful projects in the past?What are their credentials?Are they reputable members of the crypto community and blockchain ecosystem?The goal is to find if the team behind the project is experienced and composed of experts who know what they are doing. You can look at on-chain analytics platforms and blockchain explorers to supplement your research regarding this. You can also sniff around their social media profiles or check out Twitter for conversations they engage in.Ethereum, for instance, has such a strong investment community because every individual working on Ethereum creates value for Ethereum holders. Despite issues such as high fees and slow transactions, developers, community builders and other top talents still want to go onboard with Ethereum-related projects. Platforms like AAVE and OpenSea​, for example, are built on Ethereum. The logic behind ensuring a strong core team backing the project is because it creates a ripple effect. A project with a strong talented team attracts even more credible forward-thinkers, thereby allowing even more projects and improvements to be built upon the platform, much like Ethereum. These people strive to continually improve on available platforms and initiatives related to the project, thus creating even more value for currency holders. Which altcoin platforms have the most potential? When it comes to altcoin investing, there are a variety of options you can choose from. However, it’s always prudent to know which ones have the most potential to ensure you will be making a smart investment.Ethereum: There’s a reason why Ethereum is dubbed by many as the “King of Altcoins.” Created in 2013 by Vitalik Buterin and co-founders, Ethereum is a smart contract platform used to create decentralized applications (DApps). The founders engineered Solidity, Ethereum’s very own programming language for smart contracts. The majority of the current decentralized finance space relies on Ethereum’s blockchain, while the native token Ether (ETH) continues to evolve in its usefulness by the day.Chainlink: Chainlink takes smart contracts to another level by incorporating real-world data. Thanks to Chainlink, Ethereum smart contracts can now make calls to other application programming interfaces, as well as act on global occurrences and other asset prices. Chainlink’s value continues to soar while it brings onboard valuable stakeholders, including former Google CEO Eric Schmidt as one of its advisers.Stellar Lumens: Stellar aims to unite global banking systems via its decentralized platform. As such, it uses disconnected payment methods like Alchemy Pay and Single Euro Payments Area. The Stellar network then connects such systems via a decentralized ledger. In competition with Stellar is Ripple, whose run-in with SEC has made it vulnerable. This places Stellar in a prime position to take the reins at becoming the top global payment network.Aave: Aave is already one of the top lending protocols today and continues to offer security and anonymity to borrowers. Because of its popularity, borrowers are required to offer greater collateral than the amount they are borrowing. The collateral is safely held in escrow throughout the duration of the loan. In the event of a default, the lender is automatically paid via the smart contract.

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Bitcoin dominance falls under 40%

Bitcoin’s market dominance has continued to fall, bottoming out below 40% this week. That’s very close to the all-time low of 36.7% in Jan 2018 according to data from Tradingview.Bitcoin (BTC) market dominance refers to the ratio between BTC’s market cap and the total crypto market cap.It’s not the first time dominance has dipped in 2021. Back in May, Cointelegraph reported that BTC had dipped to represent just 40.3% of the combined crypto asset capitalization, according to Coinmarketcap, and it neared the same level again in September.  Bitcoin critic and Europac chairman Peter Schiff tweeted about the event on Dec 29th, saying that it’s indicative that BTC is “losing its first-mover competitive advantage.”With over 16,000 alternative cryptos to choose from Bitcoin’s market dominance is now below 40% for the first time since June of 2018. With an unlimited supply of easily created cryptos with virtually identical properties, #Bitcoin is losing its first-mover competitive advantage.— Peter Schiff (@PeterSchiff) December 28, 2021Research published by TradingPlatforms on Dec 27 stated that the data may signal an incoming “alt season”. Over the last seven years, altcoin market dominance has increased threefold from 21% in 2014 to around the 60% mark this month.Ethererum’s (ETH’s) market dominance continues to sit above 20% at almost​​ $500 billion. Over the past year, ETH’s market dominance has doubled from 10%.In a Dec 24 tweet, Crypto analyst “Altcoin Sherpa” claimed that the “alt season” has already been underway for an entire year. They referenced a chart tracking BTC’s market dominance, suggesting that the downward trend may continue. #Altcoins: Mini thread here on ‘wen #Altseason’. Alt season has been going on for an entire year, you just haven’t noticed it. Here’s the #Bitcoin dominance chart- you can see alts have flourished since January 2021. $BTC $ETH pic.twitter.com/c2w1PjHrqV— Altcoin Sherpa (@AltcoinSherpa) December 23, 2021

It remains to be seen if institutional investment will help put a floor under the dominance metric. In a Dec 28 interview with CNBC, Genesis Trading’s head of market insights Noelle Acheson said that she could see “strong signs” of institutional crypto investment growth accelerating during 2022. She said that the amount of institutional investment growth in the crypto space over the last 12 months “has been astonishing.” Related: Bitcoin dominance on the rise once again as crypto market ralliesBack in October, analysts from international banking giant JPMorgan stated that the BTC rally at the time was being fueled by an increased appetite from institutional investors. They claimed that “institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold.” According to on-chain data from Glassnode, although BTC’s short-term supply has decreased by 32%, long-term holders added 16% to their treasuries during 2021.

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