• Bitcoin falls in price but is still the best capitalized virtual currency.
• The “hypothetical price” scheme keeps motivating traders to buy altcoins.
Bitcoin has always been the top trending cryptocurrency, but that has changed in recent months. According to Bloomberg, cryptographers are concerned to see altcoins outshine BTC. Some cryptocurrencies have a higher performance and share in the crypto market than before.
Also, altcoins like Dogecoin or Ethereum have made a lot of news these days. With the end of Saturday Night Live, hosted by Elon Musk, Dogecoin is likely to rise in price. The only thing left unsaid on Tesla’s CEO-led SNL show is that the company invested $1.5 billion in Bitcoin.
Bloomberg says that the capitalization of BTC has reached $2.48 trillion, although it has had a drop in dominance to 43%. For example, on the 10th of May, Bitcoin was capitalized at $1.04 trillion. The Bloomberg news indicates that Bitcoin had a 70% dominance when the year began.
The Coingape website reports that the JPMorgan strategist points out that low demand has led to the commercialization of other cryptocurrencies. This would be the driving force behind that price foam affecting altcoins above Bitcoin.
In the news, Bloomberg suggests that the cryptocurrency market was surprised by the stimulus payment from governments. An analyst points out that altcoins fall rapidly, unlike Bitcoin, while BTC exceeds 40% share.
Altcoins have low prices but has the same growth
The value of altcoins is affected on a mathematical level. Traders are attracted to cryptocurrencies other than BTC because of their low value. Although low cryptocurrencies are attractive, understand that your level of loss is more significant.
This method is known as the “hypothetical price illusion.” High-value caps can go up fast as low-ranks. But, many people believe that altcoins go up faster.
Many traders estimate that the asymmetry of low-cost cryptocurrencies can grow more than BTC itself, but they are wrong. This is why altcoins increase their investment level, but, systematically speaking, they retain their same price. Another reason altcoins have gained priority is because of their reach in the market that also happens with Bitcoin.
All these causes make altcoins like Ethereum reach historical values in their capitalization. The cryptocurrency has risen 442% compared to the 90% that Bitcoin has achieved in the year. Ethereum differs from BTC because it has a more prolific blockchain, but its value is lower.
Cryptocurrencies have their independent value, high or low, but without exceeding BTC. Many new technologies try to hide the capitalization of Bitcoin like NFTs but are unsuccessful. The largest decentralized currency on the market may have its flaws, but it likely will not be removed from the throne soon.