The last month and especially the last days were the currencies is a real challenge for Crypto. While all eyes are on Bitcoin at the top of the Ecosystem.
Worst of all, caught it has currencies, but the smaller Crypto with a low market capitalization. They are the main victims of the current bearish market development.
Bitcoins market dominance has declined in the last few months. However, we are far from being an Altcoin-Season. How crypto-currency analyst Joseph Young (@iamjosephyoung) mentioned: The small Coins with low market capitalization are affected by this recent decline is the strongest.
According to Young, the total market capitalization of the crypto-currency ecosystem, a decline of more than 27 percent in less than two months. Nevertheless, Bitcoins dominance has fallen from a peak of 71 percent to 66 percent.
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Small-Cap-crypto-shattered currencies
Young pointed to the significant decline in the market valuation of the crypto-currency area from October to November:
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It was really a challenging year for the Altcoins, even for those with a higher share of the market. Bitcoins growing dominance of the first factor playing against the growth of the company, and even if the big crypto-currency, something had to give lost – no Altcoin has managed to take the Initiative and to have a rest.
At the beginning of the year, it is Litecoin, it was said, he would have helped Bitcoin to its decline in the year 2018. Since then, one hears of Coins with smaller Market capitalisations only a little – and it is getting worse and worse.
Ethereum is the exception to the rule?
As a response to young’s statement concerning the smaller Coins Analyst Andrew Kang points out that Ethereum and related ERC20-Token, the exception to this rule might be.
Ether has actually been hit harder than most ERC20 altcoins the past 2 months with the average trading up in ETH terms.Most of the total market cap decline comes from large caps selling off hard imo https://t.co/CQNecXcraF— Andrew Kang (@Rewkang) November 25, 2019
Kang says:
“After the cumulative market has turned to the capitalisation of the ERC20s ETH twice, almost, it looks as if she is finally on the best way to surpass the market capitalization of ETH itself, if the current price developments of Altcoins vs. ETH continue.”
The outlined proposal is that Ethereums own market decreases capitalisation – however, the rises or the accumulation of all ERC20-Token in the case of Ether is not as fast.
This can have several reasons – including the creation of more ERC20-tokens in the Blockchain, or even the increase of the Token Standards, which leads to higher-order contributions to the total ERC20-market capitalization.