The dominance of Bitcoin (BTC) is down to 64% as Ripple (XRP) emerges as the top-performing asset in the top 10. Bitcoin, the most valuable, is watched and tracked by market participants.
As an asset that has over time evolved to be a store of value, a medium of exchange, and an anchor from where it acts as a base currency in most exchanges, BTC plays a significant role in the crypto ecosystem.
Bitcoin (BTC) Dominance Falling
However, as prices stagnate and altcoins print decent gains, its dominance is falling from January averages of around 68% to 64% hinting of a possible shift of funds to altcoins.
The #Bitcoin dominance is GOING DOWN!
But be careful people, there are many scammy shitcoins out there, like the USD and EUR!
— The Moon (@themooncarl) February 5, 2020
Of note, Ripple (XRP), at third in the market cap leaderboard, has been posting exemplary results in the past few days after consolidating in the better half of 2019.
At the time of press, XRP is up by double-digits, 10%, pushing its week-to-date gains to 18%. Year-to-date, it is just down 7%, a drastic improvement coming when fears of further drops and mixed reception of Ripple Inc. plans of an IPO continue to dominate headlines.
XRP prices are currently buoyed by several factors. While candlestick arrangements are supportive of buyers and prices are trending above the 25 cents mark, fundamentals are overly bullish.
XRP and On-Demand liquidity on the Rise, MoneyGram Deal
The increasing liquidity of on-demand liquidity corridors, for example, is a net positive of the coin’s valuation. The role of Bitso in the USD—MXN corridor also complements MoneyGram’s ambitions and these as seen the demand for XRP increase in tandem.
Also, Ripple Inc. programmatic sales are dropping as the company bar the direct sale of XRP and instead urges institutions to buy the asset from the open market.
Ripple Inc.’s focus is to increase their presence in high probability zones in South East Asia from where they can build useful partnerships in their drive of being a worthy competitor of SWIFT.
Commenting on these developments, Mati Greenspan said:
“Well, not anything in a single day, but they have been making progress over the last few months. The MoneyGram deal, more financial institutions, TPS rate rising, the lawsuit is going and expected, and the new prospect of an IPO. All things that fans can appreciate.”
Well, not anything in a single day but they have been making progress over the last few months. The MoneyGram deal, more financial institutions, tps rate rising, the lawsuit is going as well as can be expected, and the new prospect of an IPO. All things that fans can appreciate.
— Mati Greenspan [tweets are not trading advice] (@MatiGreenspan) February 5, 2020
With this shift, it is highly likely that Bitcoin dominance will continue to drop as altcoins recover after 2018 90-95% drops.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich