Tag Archives: market

Op-ed: Bitcoin Dominance and What It Really Means for the Crypto Market

Op-ed: Bitcoin Dominance and What It Really Means for the Crypto Market

When Bitcoin first came on the scene a decade ago, it was the only cryptocurrency available. It had 100% of the crypto market share at the time. Until 2017, Bitcoin accounted for approximately 95% of the cryptocurrency sector’s market capitalization. The rise of altcoins such as Ethereum (ETH), Cardano (ADA), and Litecoin (LTC) has eroded Bitcoin’s market dominance. Despite the emergence of altcoins, Bitcoin continues to account for over 70% of the cryptocurrency market until January 2021, when its relative dominance has declined. This is despite reaching an all-time high in April of $64,000 and the price of Bitcoin rising to a new all-time high of $66,000 on October 20, boosted by news that the first Bitcoin ETF. The general rule is that when BTC dominance goes up, altcoins lose value against BTC. And when BTC dominance goes down, they gain value. So, is this well-known trend changing in 2021?

Why is Bitcoin still so dominant?

At the beginning of March there were 12,170 altcoins on the market, according to CoinMarketCap. Despite these figures, investors continue to put over 50% of their funds into Bitcoin when investing in cryptocurrency. When some investors are deciding how to diversify their portfolios, there is clearly a “Bitcoin bias” at work. Because Bitcoin is both the most well-known and trusted cryptocurrency, it serves as an entry point into the crypto world for most people. As the price rises with a bull market, people see it as a good investment and want to get into the market. We’ve seen time and again that when the price of Bitcoin rises, new entrants flock to the crypto market. As a rule, when money flows into Bitcoin rather than other cryptocurrencies, the price of Bitcoin rises, extending Bitcoin’s dominance. Then we see the reverse happening, as investors putting their Bitcoin profits into large altcoins, all the way down to small-cap altcoins, before returning to Bitcoin. The cycle keeps returning to Bitcoin because it is the entry point for most new cryptocurrency users.

We saw a significant decrease in Bitcoin’s dominance in January, which fell from 73 percent to 40 percent. As of today, it still has a market share of less than 50%. During this time, the largest altcoin, ETH, has increased in value by about 400%, while Bitcoin has only increased by about 70-80% – what is possibly a key reason why Bitcoin has been losing its dominance in 2021. Plus, when the price of Bitcoin goes up savvy crypto traders know that this often has a beneficial impact on altcoin value, especially Ethereum which has grown in popularity with the Eth2 upgrade and the proliferation of DeFi apps based on the platform.

We also can’t ignore the fact that the valuations of the major altcoins are skyrocketing in price, despite a few glitches along the way such as Solana’s (SOL) recent outage; it’s now a question of why put your money in Bitcoin when there are more rewarding crypto assets? We believe therefore that the rise in altcoin valuations is the key driver for the current reduction in Bitcoin’s dominance, despite the twin all-time high price rises to over $60,000 this year so far. The pace of innovation in Ethereum and rival altcoins’ numerous upgrades to meet market demands, are key factors contributing to their growing dominance relative to Bitcoin.

Another solid reason why Bitcoin’s dominance is slipping, is down to the maturing nature of the 2021 crypto market. Noting the growth in size of the overall crypto market value in 2021, Frederick Vold, writing in CryptoNews, points out that the total market capitalization crossed the $2.5 trillion mark in mid-October:

“It is worth noting is that bitcoin’s dominance of the overall crypto market valuation is lower now than during the all-time high which the bitcoin price hit in April. Back then bitcoin’s share of the crypto market made up about 54%. As of today, the bitcoin dominance is around 44%-46% (depending on a data provider), having remained relatively stable around 40% since mid-May.

“The slightly lower bitcoin dominance this time around indicates that more altcoins are experiencing growth in their market capitalizations. However, it is also important to note that the number of altcoins is constantly rising, which, all else equal, reduces bitcoin’s share of the crypto market,” Vold added.

BigONE’s View

BigONE believes Bitcoin acts as a bridge for new users to enter the cryptocurrency market, as the best known and most widely publicized in the mainstream media. It is easier to persuade new users of the value it offers because it has stood the test of time and is the most reputable cryptocurrency, especially when fears of Ponzi schemes persist in the market. “There are a lot of scams and criminal operations that target individuals and it’s very important to recognise that in an unregulated market there is no recourse,” says Ian Taylor, the chief executive of lobby group CryptoUK in a recent FT article. Bitcoin also serves as an entry point for large institutional investors and regulators interested in learning more about the crypto space. Along with worries about rising inflation, spurred on my rising energy prices and raw material costs, institutional investors can now get safer exposure through the ProShares Bitcoin Strategy ETF. It ended with $1.1 billion under management on Wednesday October 20 after trading volume topped $1.2 billion, according to a press release. That’s the quickest that an ETF has reached the $1 billion-mark, Bloomberg Intelligence data confirmed.

We believe that user trust in other cryptocurrencies is still growing and that this will be the deciding factor in the battle for crypto market ‘dominance’. In addition, Bitcoin’s influence is beneficial to the crypto space because it acts as a “trust gateway” for new entities and users to understand and invest in the crypto space. As Shaun Heng, vice president of growth and operations at CoinMarketCap, a cryptocurrency ranking and analytics platform, told Cointelegraph: “Although Bitcoin is volatile, I believe it will still dominate the market for a while to come. Bitcoin is the basis for which all other cryptocurrencies were made, and while I don’t expect to see it reach the heights it did in the past, I also don’t think it will fall off considerably in the foreseeable future.” Chairman of BigONE Anndy Lian said that in the long term it was unlikely that Bitcoin would reach the heights it had in terms of dominance at the start of 2021. “The crypto market’s rapid change, from the rise of stablecoins like USDT and BUSD, to the popularity of meme coins like Dogecoin, is the backdrop for the decline of Bitcoin’s dominance. However, I believe the price of Bitcoin is set for even greater all-time highs in the near future, and with new Bitcoin ETFs coming on stream, it’ still the cryptocurrency of choice for investors.”

 

Original Source: https://www.securities.io/bitcoin-dominance-and-what-it-really-means-for-the-crypto-market/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Coinbase Ventures Into the NFT Market – Trend Setting for Other Crypto Platforms?

Coinbase Ventures Into the NFT Market – Trend Setting for Other Crypto Platforms?

Coinbase has announced the launch of its marketplace for non-fungible tokens (NFTs). Prospective users will be able to join the waiting list to use Coinbase NFT – a decentralised marketplace for NFTs that will make minting, purchasing, showcasing, and discovering NFTs easier for its users.

NFTs offer buyers the opportunity to own digital assets that are stored on the blockchain. NFTs have gained mainstream attention across the art, music and fashion industries, enabling creators to monetise their digital work and providing buyers with a unique and clear proof of ownership.

NFT trading activity is on the rise. It soared this summer, more than doubling between July and August 2021, with roughly 280,000 unique buyers and sellers by the end of August. High profile NFT sales include the £500,000 sale of the ‘Charlie Bit My Finger’ NFT earlier this year.

Coinbase NFT will be a peer-to-peer marketplace designed to enable creativity. The initial launch will support Ethereum-based ERC-721 and ERC-1155 standards with multi-chain support planned for the near future. The platform has been created to foster community and connect creators, collectors and fans. Users will receive a personal feed that will showcase their NFTs in one place, helping to connect them with like-minded fans or artists.

As part of Coinbase’s overarching mission to drive economic freedom, Coinbase NFT will empower creators and help to raise the ‘creator economy’ from being a smaller subset of the ‘real economy’ into a central driver of economic activity.

The Knock-on effect

Despite using blockchain, crypto exchanges have typically kept their distance from NFTs. In the last couple of years, NFTs have seen an unprecedented level of popularity, setting off alarms for crypto exchanges, making them wonder if it should be something to look at. Coinbase has finally taken the plunge, but what will this mean for the NFT market and how will other crypto exchanges respond?

Barron Solomon, CEO and co-founder of Solo Music said, “While established exchanges like Coinbase and Robinhood [rumoured] have come to the NFT space later than the industry’s most prominent platforms, their arrival is a promising sign for the future of NFTs. Crypto-curious people are likely to feel more comfortable starting their NFT research with entities they know and trust, with familiar platforms. Once they dip their toe into the NFT world, I’m confident that they will become interested in the space and look to platforms new or old that are offering unique NFTs specific to their interests. I think NFTs in the music and entertainment industry in particular will see massive engagement as fans and consumers become more familiar with engaging in the digital space. Ultimately, this will lead to mainstream adoption which benefits the industry as a whole.”

“Coinbase’s Coinbase NFT launch signals that the entire cryptocurrency market has fully embraced NFTs.” said Aubery Strobel, Head of Communications at Lolli. “For many, Coinbase was their first experience in buying bitcoin and other alt-coins. Now it will be, for many, their first on-ramp to owning an NFT. Next for this industry will be the integration of NFTs into a digital and physical identity across platforms, creating the beginnings of the metaverse.”

On the topic of the digital and physical identity Victor Hogrefe, CBO and Co-Founder at EonLabs, said, “A broader point here about NFTs is that their popularity shows we’re shifting from the real-world economy to the digital economy. It’s about changing how and what we value.

“It may not be a smooth ride for NFTs, though. The tokenisation of traditional assets has met with two massive obstacles:

  • The problem of connecting the asset with the token in a meaningful and secure way, thus preventing double-spending or other types of fraud (If I can tokenise a house, and sell those tokens to overseas investors, what is to prevent me from then also selling the house in a traditional way, thereby double selling the house?)
  • Securities laws. The problems of dealing with securities law, regulatory and jurisdictional issues make tokenisation of assets a pain and tend to erode the benefits of doing so at all.

“The low-hanging fruit of asset tokenisation is assets that already only exist in digital form, and this is exactly what we’ve seen with the rise of NFTs.”

María Paula Fernandez, Advisor to the Board of Directors at Golem Network said, “Coinbase have a proven track record of having one of the easiest crypto onboarding processes in the industry. Coinbase provided many options for getting the best use out of coins, but we never had anything like that for NFTs. OpenSea is good but they are not as widespread as Coinbase – they don’t have the know-how of what a user needs to the same extent, and how to capitalise on an increase of users through word of mouth.

“It would be great to see other crypto platforms follow suit but they would have to be mindful approach towards onboarding new technologies and new users – understanding the risks that come with this.

“I think Coinbase’s expansion is fantastic as we needed healthier competition in the space. No market should be dominated by a singular business. The expansion offers a new alternative for people, to change up what they had previously been used to and not go to that only option in the market.”

Anndy Lian, Founding Member of INFLUXO, said “The announcement that Coinbase is entering into the NFT market, coupled with FTX launching a Solana-based NFT marketplace, suggests strongly that NFTs are going to go mainstream in a big way. While the current dominant NFT marketplace OpenSea has seen up to 80,000 transactions a day its browser based wallet is not super easy to use at times and there have been security issues which have put people off. The Coinbase emphasis on usability, from initial minting to discovery of new and exciting NFTs, is a sign of the growing accessibility of the NFT market. Another sign of taking NFTs mainstream may be what Coinbase describes as a ‘personal feed’, blending social media and NFTs. Following Twitter’s rollout of profile NFTs and TikTok’s launch of its first creator-led NFT collection, TikTok Top Moments, this could be huge, especially if Facebook picks up on this NFT personalization trend and runs with it.

Coinbase’s reach will bring new users to the world of NFTs and whilst they will initially only use Coinbase as a means to trade and mint, the more confident they get, the more likely they will explore other platforms.

 

 

Author

Francis is a junior journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

 

Original Source: https://thefintechtimes.com/coinbase-ventures-into-the-nft-market-trend-setting-for-other-crypto-platforms/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Virtual Asset Market in 2021: Anndy Lian said “Crypto is ready for mainstream”

Virtual Asset Market in 2021: Anndy Lian said “Crypto is ready for mainstream”

The market for virtual or digital assets has evolved since its inception in 2009. The changes are rapid. The market has been dominated for some time by Bitcoin and in this recent bull run, the altcoins are also doing very well, some of them with a few thousand per cent increase. We are now seeing significant growth. People from all over the world have flocked to digital assets like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Binance Coin (BNB), TRON (TRX), DOGECOIN (DOGE) and etc.

There is also worldwide commercialization of blockchain trend in the market. Companies are now more open to look at this technology. Companies that are more forward-looking are also looking at the potential of tokenising their assets.

The regulatory momentum that began in 2020 will continue in 2021 as regulators around the world seek to either fit blockchain technology into existing regulatory frameworks or build out new approaches. The framework in future could include what is being built in the decentralised environment too.

Join Anndy Lian to discuss the points above. This event is organised by STOBOX and supported by Blockcast.cc

00:00​ — Intro
1:35​ — About Anndy Lian
3:18​ — Mass commercialization of blockchain
8:10​ — Are governments supporting blockchain
13:29​ — Does crypto go mainstream?
18:22​ — Will DeFi replace traditional finance
24:37​ — How to build a community?
30:34​ — Where is the regulation globally moving for digital assets?
38:16​ — How are large corporation moving into crypto
45:42​ – Last words

Anndy Lian is an early blockchain adopter and experienced serial blockchain entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030” and currently the Advisory Board Member of Hyundai DAC Technology. Anndy is also part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce (Chairman, Bitcoin Foundation) and Alexis Sirkia (Founder of Yellow.com), helping the province to grow using blockchain technologies.

He played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region. Anndy is also part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce.

Lian is also the Chairman (Singapore) for Korea eSports Industry Association (KeIA), Advisor to CZZ and Investment Director at Passion Venture Capital.

To find out more about Anndy Lian’s work, please visit www.anndy.com

 

The full video can be found at https://youtu.be/BBh8dA_OKMk

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j