How do I increase the market cap of a cryptocurrency?
Barry Bitcoin—it’s volatile and valuable, and it’s also in vogue for traders around the world.
Even after a recent 15% drop, Bitcoin still makes up about 68% of the cryptocurrency market. This means that currently, Bitcoin’s market cap is greater than all other altcoins combined:
This hasn’t always been the case for Bitcoin—in fact, its market share was a mere 32.8%, back in January 2018. However, within a year it had captured the majority of the market again. And ever since, it’s held a relatively stable piece of the pie.
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Why does Bitcoin Have a Greater Market Value?
How has Bitcoin managed to remain top dog in the cryptocurrency market throughout the years? There are a few likely reasons:
- It’s built a solid reputation
- Bitcoin was the first cryptocurrency on the scene, giving it a first-mover advantage. This is a fancy way of saying that the early bird gets the worm—or in Bitcoin’s case, media attention and investor trust.
- There’s a finite supply
- The world’s supply of Bitcoin maxes out at 21 million, and about 18.5 million are currently in circulation. This scarcity ideally increases its value over time. Other cryptocurrencies, like Ethereum’s coin Ether, are currently limitless.
- It’s more accessible than other cryptocurrencies
- Bitcoin has a much larger ecosystem than other cryptocurrencies. Because it has more applications and merchants that accept it, it’s more convenient than other digital coins.
Should We Even Compare Cryptocurrencies?
Not all crypto assets have the same intended use. For instance, the Ethereum network was created primarily to facilitate decentralized applications and smart contracts.
So, while it’s interesting to compare Bitcoin’s market cap to other coins, it’s important to remember that they’re not necessarily direct competitors—and success for one doesn’t necessarily mean the death of others.