A new report is in the altcoin news and rumors, showing that only one quarter of the Bitcoin investors are loyal to the flagship cryptocurrency. On the contrary, the trend of altcoin trading is rising and the majority of investors are eventually branching out into altcoin investments.
As the report shows, altcoin trading is a choice for around 76% of the investors – all while BTC apparently acts as some kind of a “gateway drug” according to the Coinbase “Around The Block” blog. The text shows that fully 60% of initial investors with at least five purchases on the exchange, actually make their first purchases into Bitcoin.
Below is a helpful asset preference chart that shows all of this in an image.
Furthermore, we can see that Coinbase users trade altcoins at a rate higher than those of the altcoins’ market capitalizations would suggest. There is a 3% overall disparity between altcoins’ trading volume on Coinbase and their market caps, with the highest rates for Chainlink (LINK) and Tezos (XTZ).
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Also, Ripple’s XRP token was the outlier here which had a negative trading/market cap rate.
While altcoin trading is on the rise, the Bitcoin news are also showing positive things as BTC again comes closer to the $10,000 mark. There is another interesting visualization based on data from Coinbase which shows the asset preference of customers and the hottest altcoins right now on the market.
Data from TradingView suggests that market share of mid-cap altcoins and below has been growing steadily since August 2019, which is a date that marks the broad bottom for altcoin investments during 2019 after the explosive first half of the year.
Likewise, the BTC dominance reached highs not seen in years around this same time but the leading coin has been falling in dominance since then – although the appearance of COVID-19 and its economic effects seem to have given Bitcoin a new life.
Anyways, the report in the Coinbase news is very interesting, showing that altcoin trading is a sign of risk-taking but also something that is gaining more popularity among new and existing investors. Let’s just hope the trend continues and altcoins emerge on the markets even more.
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