Contraction of Total Cryptocurrency Market Cap May Be Inevitable

in #new8 years ago


The total market capitalization of all cryptocurrency markets has exceeded $100 billion USD following bitcoin’s recent establishment of new all-time price highs, in tandem with dramatic value increases in most altcoins.

Also Read: Bitcoin Markets Increasingly Reflect Global Transition Towards ‘The Asian Century’

The Total Cryptocurrency Market Capitalization Has Now Surpassed Major Companies Such As Ford And Delta Airlines.

The milestone of the cryptocurrency markets attaining $100 billion status has been largely attributed to bitcoin’s impressive growth in Asia during recent months, with bitcoin’s market cap representing approximately 45% of the total cryptocurrency markets. Since the beginning of 2017 the price of a single bitcoin has tripled, creating an all-time high of over $2900USD on Bitstamp.

Over the last 7 years Bitcoin’s price has grown by an average of 0.3% daily, culminating in Bitcoin’s current market cap of over $45bnUSD, renders the digital currency of comparable size to Tesla – who currently boast a $50bnUSD market cap. With Bitcoin steadily continuing to absorb capital from new markets, this trend may continue to hold up over the longer term. New investors should exercise caution in interpreting these facts as evidence of Bitcoin’s inevitable unending price ascension, as the price of a single bitcoin has gone up over 1000% since 2015.

Contraction of Total Cryptocurrency Market Cap May Be Inevitable Towards End of 2017

Entering the 12-digit club ranks the cryptocurrency ecosystem alongside major banks such as Commonwealth Bank of Australia ($105bnUSD market cap), Royal Bank of Canada ($100bnUSD market cap), and puts the cryptocurrency ecosystem of comparable size to McDonalds US – who currently have a total market cap of approximately $125bnUSD. The total cryptocurrency market capitalization has now surpassed major companies such as Ford and Delta Airlines.

A Contraction In The Share Of The Total Market Cap Represented By Altcoins May Be Inevitable

Although market sentiment across the altcoin markets currently comprises euphoric bullishness, many speculators are preparing for the party to soon come to an end. The extreme percentage gains seen by many altcoins are very likely to be unsustainable long-term, suggesting that a contraction in the share of the total cryptocurrency market cap represented by altcoins may be inevitable. If so, the only question is: when?

Contraction of Total Cryptocurrency Market Cap May Be Inevitable Towards End of 2017Despite the intensity of the current cryptocurrency bubble, a recent resurgence in Chinese trading volume following a return to normal operations regarding fiat deposits and withdrawals may drive further growth in the total market capitalization of cryptocurrencies in the immediate future.

Will altcoins be able to retain over a 50% share in total cryptocurrency market capitalization? Or will Bitcoin again comprise over half of the total cryptocurrency ecosystem? Share your thoughts below!


Images courtesy of Shutterstock

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The altcoins shall feast on the rotting corpse of bitcoin

buddy you gotta turn off The Cranberries

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thanks for sharing

Good post - Upvoted & Following!

it may...i think there will "be less cryptos" in a year....there will be a shake out and many people will have lost monies on the ICO scams.

There will be a lot lost on ICO scams, but I think big useful coins/ that have a niche will be the currency of the future. Fiat will fail when government confidence does, and from the looks of things we are not far off.

Thanks for your reply! Im new in Steemit. How do i vote on your post?

We might see a big correction, followed by insane amounts of buying from people on the sidelines. Just my thought.