Over the last year Bitcoin has been losing ground to a maturing altcoin market. Startups that issued ICOs in the last few years are now moving to the phase of delivering working blockchain protocols and momentum has swung in their favor according to these charts presented by Fakhan of Cryptodaily.
Perhaps, the psychological issues of investors have contributed to the Bitcoin to altcoin swing as well. During a bear market, investors saw opportunities in low priced penny coins and began to shift their money away from BTC to something with higher perceived potential.
It also makes sense that the altcoin market is eating into Bitcoin’s market dominance due to the simple fact that projects with legitimate teams and goals are maturing and offering smart alternatives to BTC.
Before the altcoin movement started, Bitcoin obviously had a 100% share of market. At the dawn of the altcoin revolution, Bitcoin has nowhere to go but down regarding market share. A similar effect might also be impacting the price of Ethereum. Although ETH seems to have a support around $200, altcoins have risen against its market share as well.
While the altcoin market peaked in its market share percentage vs Bitcoin in April, alts have seen a steady increase in their market share since January 2017. The earliest days of the ICO boom were filled with scams, frauds and greed, but apt of the get rich quick rush has been replaced with real and promising projects.
As altcoins continue to prove themselves and offer real world use cases and value, they will continue to grab a bigger portion of the total market cap of the entire cryptocurrency sector.
The success of the altcoins such as EOS, Tron, or Stellar Lumens for example will attract investors and pull some money away from Bitcoin. While Bitcoin may still go on a bull run and hit all time highs again in the next year, the rise probably won’t be as meteoric as 2017’s run to $20,000.