Bitcoin remains the world’s most popular cryptocurrency with a market share of just below 65%. Still, that might change in the near future as various altcoin projects are having a real bull run at the moment.
According to research conducted by a crypto investment agency called Pantera Capital, there’s a trend that shows more money is being flown into altcoins lately. The company suggests that Bitcoin dominance might come to an end sooner than expected.
Pantera Capital did explain that the altcoin bull run of a magnitude that was recorded in 2017 is unlikely to happen. However, some altcoins are expected to outperform bitcoin very soon. Actually, some of them have already done it.
Ethereum On Its Way to Beat Bitcoin
Saying that Ethereum has been doing well in 2020 would be an understatement. So far this year, Ethereum has been up by 88%. Bitcoin, on the other hand, has shot up by 34%. Obviously, if the trend continues long enough, Ethereum could get on the throne of the world’s most popular cryptocurrencies.
One of the main reasons why such a scenario seems plausible is that Ethereum 2.0 is on its way. The platform upgrade starts in the next couple of months and will bring all sorts of improvements.
Vitalik Buterin’s brainchild is not the only cryptocurrency that has the potential to dethrone Bitcoin. This year, we’ve seen altcoins like 0x and Augur recording major success. 0x has increased by 98%, while Augur has gone 97% up.
Altcoins Make Up 35% of the Cryptocurrency Market
According to Yahoo Finance, there are 5,392 digital currencies in 2020. All those cryptos make up 35% of the total cryptocurrency market share. The other 65% belong to bitcoin.
With a $128bn in the circulation, Bitcoin is the biggest cryptocurrency in terms of market capitalization. Ethereum is trailing behind with $19.4bn. Although the gap between the two is still very large, cryptocurrency analysts believe things might change in the future.
However, it seems very unlikely Ethereum could leapfrog Bitcoin anytime soon. The reason for this is that the interest in all cryptos is going up, including both altcoins and Bitcoin.
Why Are Cryptos Going Up?
The growing interest in cryptos can be explained by the fact that investors wanted to get away from traditional fiat currencies amid increased money printing by central banks.
Furthermore, during uncertain times such as the COVID-19 pandemic, people are turning their focus away from traditional financial institutions for the fears of global collapse. Such a thing does not seem plausible with decentralized platforms, which all the cryptos are.
Prediction for the Altcoin Bull Run
In its recent report, Pantera Capital shared its views on what the future holds for altcoins. According to this company’s data analysts, altcoin bull bur is expected to stabilize in 2021.
As a result, the interest in cryptos other than Bitcoin will probably increase. As history thought us, once the interest in a certain digital currency goes up, its price goes up as well. That said, it seems that now is the perfect moment to start with altcoin investments.