Altcoins outperformed bitcoin this month in terms of performance. Although the entire crypto market has experienced losses, bitcoin’s performance has been more impressive than ever. This is at a time when digital assets were considered safe havens for investors. Altcoins are leading the recovery effort, which indicates that the trend is worsening, particularly for bitcoin.
Bitcoin fails to hold up
Bitcoin’s last month has seen its fair share ups and downs. Although Bitcoin is an active market participant, it has not been able to maintain its value. In August it saw an overall decrease of 13%, which is higher than any other index.
Large Cap Index, which tracks bitcoin’s movement at the close of business, saw the largest drop in its value during August. In August, the Large Cap Index saw a 12% decline. This left the market vulnerable to its smaller peers.
Altcoins surpass BTC | Source: Arcane Research
Surprisingly, both the Small Cap and Mid Cap Indexes experienced price drops of 10% each. Markets like this are volatile and investors should exit the indexes as soon as possible. They have been a safer haven than Bitcoin or the Large Cap Index in this market. However, all three indexes saw declines of at least two percent, which is not a positive sign for crypto markets.
Stablecoins regain dominance
While Bitcoin is still the dominant cryptocurrency on the market today, it is losing its dominance every day. Investors fearing the worst and its declining price, Bitcoin investors have shifted to stablecoins in order to get some protection from market volatility. The stablecoin’s dominance is continuing to grow in light of all this.
Source: Market Cap BTC Dominance on TradingView.com| Source: Market Cap BTC Dominance on TradingView.com
For another week, bitcoin’s dominance is down again, this time by 0.65%, and stablecoins have been on the sidelines to soak it all up. USDT’s market dominance grew by 0.1%, and USDC’s by 0.15%. BUSD was another powerful contender and added 0.06% to their dominance during the same period.
In spite of the weak performance of Large Cap Index, Ethereum experienced an increase in its market dominance. The altcoin, whose upcoming ‘Merge’ has greatly excited the market, saw its market dominance rise by 0.24%.
Bitcoin’s dominance touched a new 7-month on 30th August when it fell to 39.35%. Ethereum’s market dominance is now sitting at 19.81%. USDT, USDC and BUSD are at 6.81% and respectively 5.27% and 1.94%, respectively.
Featured Image from Prestmit. Charts from Arcane Research and TradingView.com.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…