Bitcoin’s dominance in global crypto market contracts; share in total crypto mcap down by 41% this year

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September 27, 2021 9:36 PM

Ethereum has been leading the altcoin tally with a $359 billion market cap followed by Cardano with $70 billion, Tether with $68 billion, and Binance Coin with $58 billion in the top five bracket.

Bill on cryptocurrencyOver the past five years, there has been a 56 per cent decline in Bitcoin's share in total crypto market cap.

Crypto king Bitcoin’s share in the total cryptocurrency market cap has plummeted by 41.1 per cent this year so far – from around 68 per cent at the beginning of 2021 to near 40 per cent ($813 billion) as of Monday, according to the data from CoinMarketCap, even as the market share of other cryptos such as Ethereum, Cardano, Tether, and more has jumped. For instance, Ethereum grew from 10 per cent to nearly 19 per cent while Cardano jumped from 0.70 per cent to 3.67 per cent and Tether from 2.77 per cent to 3.67 per cent. The overall market cap of cryptocurrencies currently stood at $1.91 trillion.

Not just its share in total crypto market cap, the market share of Bitcoin owners in global crypto owners has also declined. According to a report by Hong Kong-based payments and cryptocurrency platform Crypto.com titled Measuring Global Crypto Users: A Study to Measure Market Size Using On-Chain Metrics, “When checking the composition of crypto owners, we found that Bitcoin and Ethereum were losing their market shares. New challengers like Proof-of-Stake protocols and meme tokens showed great potential in May, especially after Bitcoin mining came under more scrutiny.” The July 2021 report also noted that the number of global crypto users had reached 221 million in June 2021 and that it took only four months for the global crypto population to double from 100 million to 200 million. 

Also read: Over 8 lakh jobs likely in India’s crypto market by 2030 from current 50,000: Report

“There are other utility tokens one can look at and get better returns. Also, investors are diversifying their crypto portfolio wherein they are putting 60-70 per cent of their money in bitcoin and rest in altcoins,” Nischal Shetty, CEO of Bitcoin exchange WazirX had told Financial Express Online. As per CoinMarketCap, there are 12,170 altcoins (coins other than Bitcoin) up from 8,655 as of March 2, 2021, this year. Ethereum has been leading the altcoin tally with a $359 billion market cap followed by Cardano with $70 billion, Tether with $68 billion, and Binance Coin with $58 billion in the top five bracket.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.

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