Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: Henrikbliss on June 25, 2018, 03:57:37 PM
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Out of the thousand cryptocurrencies existing today, only six coins account for 70% of the total market volume, according to an analysis conducted by diar.
The report revealed that more than half of the trading volume of over 1,600 cryptocurrency markets was produced by the pairings of just five virtual currencies – BTC, XRP, ETH, BCH, and LTC, citing data from Coinmarketcap recorded on the 18th of June, 2018.
diar asserted that “liquidity [is] near non-existent on [the] majority of traded tokens,” as the entire market “remain pinned to the peaks and valleys of Bitcoin.”
Read More: https://news.bitzamp.com/only-6-cryptocurrencies-comprise-70-of-total-market-volume-how-does-the-remaining-30-fair/ (https://news.bitzamp.com/only-6-cryptocurrencies-comprise-70-of-total-market-volume-how-does-the-remaining-30-fair/)
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Yeah it seems like a fair analysis but its just mainly people are all playing the BTC/Tether shelter game when things get bad and only trade alt coins when things are looking up.
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Bitcoin dominance had been slowly decreasing, but has jumped up again with all the market uncertainty. I am hoping that it will fall back below 35-40% over the next few months, it is not healthy for a market to rely so heavily on one coin, especially when, as you rightly said, the next 5 coins swallow up another 30% of the trading volume. It will take time before there is true diversity and the coins move (relatively) independently, but as the overall value moves higher, it should break down more.