The cryptocurrency market has been widely acknowledged as the most unpredictable financial marketplace in the world. Its bears and bulls trigger major ups and downs in the market. If we analyze the year 2021, we see that the market exploded in the first quarter of the year, only to crash in the next three months. However, now again the market is shaping up positively for the coming winters.
The month of August proved to be a sigh of relief for the industry, as the trading volume of the market and its cashflow increased significantly, indicating a relief and support is on the way for the crypto community. The total capitalization of the crypto market has crossed the $2 trillion benchmark, and it is not far from its all-time high mark as well. Overall, the market is quite positive, and it is expected that the next few months will be quite favorable for the traders and investors.
Bitcoin’s dominance decreases as altcoin grow rapidly
Another major positive development for the crypto market is the decreasing dominance of the largest cryptocurrency in the world, Bitcoin. The dominance index of Bitcoin has fallen below 42%. This means that the demand of altcoins is increasing significantly in the market, and that the investing lot is showing more interest to other projects rather than Bitcoin only. The market capitalization for Bitcoin is nearing the $1 trillion mark, however, other coins like Ethereum, Polkadot, Cardano, and Solana are showing major signs of growth in the market.
Ethereum has surpassed the $3,700 mark for the first time in over 3 months. ADA and SOL have both hit their all-time highs within this week. Moreover, DOT has also surpassed $33 which indicated a commendable positive sign in all of these altcoins. The increase in the demand of these coins is positively influencing their prices in the market. Even though Bitcoin has again bounced from the support level of $46K, and is currently valued over $50K, its growth is considered to be rather limited and constrained in comparison to these altcoins.
In addition to that, the market of altcoins is also impacted by the increasing demand of NFTs and DeFi platforms. They run on the Ethereum blockchain, and thus the blocking of coins within the DeFi protocols is also triggering a decline in the supply of coins. Nonetheless, these are positive signs for the market of altcoins, and the investing sector also seems to be happy with this progress. Experts believe that if everything goes well in the market, this coming fall might be immensely profitable for the crypto community.