Coinbase data: crypto investors are still fans of altcoins despite poor performance
Coinbase data seems to indicate that altcoins are still in high demand despite their poor performance against Bitcoin seen in recent months.
Their decline was one of the reasons Bitcoin was able to gain greater dominance over the aggregate cryptocurrency market, which recently peaked as investors continued to withdraw funds from altcoins.
The recently published report of the crypto exchange suggests that the vast majority of investors end up buying Bitcoin as well as other cryptocurrencies. This is probably due to the widespread expectation that there will ultimately be a proverbial “old season” that will allow smaller cryptocurrencies to make insane profits, similar to the trend that ends 2017 was observed.
Bitcoin dominance rises and rises
At the time of the article, Bitcoin's dominance in the aggregate crypto market is 67%. This is roughly the state of affairs in recent days. It marks a very slight decline compared to the annual highs of 67%, but a big increase compared to the lows of below 60% per year 2020 at the height of the market-wide upward trends were set in February.
The increasing dominance of Bitcoin is indicative of the escape to security among crypto investors, as many view Bitcoin as the least risky digital asset due to its size, liquidity and history.
Investors are still fans of altcoins despite poor performance
It is important to note that despite the recent weakness, investors are still very interested in getting involved with altcoins. The data from Coinbase show an interesting trend among investors on the platform, as more than Finally, % of active users diversify into other assets besides BTC.
“Starting from customers with at least 5 purchases 60% with Bitcoin, but only 24% remain with Bitcoin only. Overall, over 75% finally buy other assets.
Coinbase concludes that Bitcoin acts as a gateway to the broader crypto market for investors who then begin to diversify their portfolios.
“But private individuals' preference for branching out to other assets shows that new users are coming to cryptos via Bitcoin, but generally are starting to look for alternative assets and Search use cases.
Text proof: bitcoinist
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