Altcoins have had a good run over the last 7 years. For a long time, they’ve been a clear second after Bitcoin (BTC). However, the tide has turned, and now they’re gaining ground on BTC.
The market share of Altcoins has been increasing since 2014. According to data presented by tradingplatforms.com, they have a 62 percent share in the cryptocurrency market as of December 9th, 2021. During the last seven years, their capitalization tripled from 21 percent.
Meanwhile, BTC’s market share has been dropping over that timespan. Its capitalization was 78 percent in December 2014. However, that standing has deteriorated to 38%.
According to Edith Reads of tradingplatform.com, “The growth in market cap of the Altcoins is indicative of a shift in thinking about crypto assets. Many are embracing them as alternatives to BTC. As the crypto space continues to develop, BTC’s dominance will come under increased pressure.”
Additionally, Altcoins offer more usage and more opportunities for future gains. For example, they’re making inroads in the DeFi, NFT, and metaverse sectors.
Furthermore, Altcoins are based on more advanced Blockchains. As a result, they provide users with more efficient and cost-effective transfers than BTC.
Bitcoin has also received a lot of criticism from environmentalists. For example, despite holding large sums of the cryptocurrency, Elon Musk is its harsh critic.
As a result of his criticisms of the currency’s environmental impact, its value plummeted. His confirmation that Tesla will no longer receive Payments in bitcoin added to its troubles.
The restriction on cryptocurrency mining activities in China has hit the coin yet again. BTC’s hashing capability has decreased as a result of those crackdowns. Thus the coin’s value has dropped significantly.