Altcoins are taking over the crypto market because 40% of market capital is invested in them. According to CoinMarkCap, there are more than 11000 different coins in the current crypto market.
Bitcoin started the market of digital assets back in 2009 and has been very successful over this period. Altcoins are those which were launched after bitcoin’s success and each of these bitcoin comes up with a solution to bitcoin’s drawback. These coins represent themselves as a better replacement for bitcoin and come up with the competitive advantages with a newer version.
The Altcoins are dominating the market as market capital has crossed its threshold of 2 trillion US dollars since May 2021. Bitcoin dominance is dropping constantly and coins like Ripple, Polkadot, XRP, and Cardano are grabbing a fair share of crypto market capital. The downfall is not only for Bitcoin because Etherum is in it too.
Reason behind rise of Altcoins
Bitcoin has some flaws, like Speed of transaction validation, high mining cost, and many more, which are now being replaced by coins that are faster, more secure, and have lesser transaction fees. The Crypto market can be very volatile sometimes and can be affected by influencers’ tweets like Dogecoin and Bitcoin were affected by Elon Musk’s tweets.
Investors want more ROI and a stable market so altcoins are providing that opportunity to them. Investors are using the Proof of Stake(PoS) to increase their capital gains. Investors are paying attention to these coins because they are more stable than Bitcoin and the risk of losing all the money is less than Bitcoin.