Many altcoins have lost over 60% of their value from their May peaks. Will they be able to win back losses and return to highs already this year?
A month ago, cryptocurrency market capitalization renewed its all-time high above $ 2.6 trillion.
At the same time, the dominance of bitcoin for the first time in three years fell below 38%, because while its quotes were declining, altcoins were updating price highs.
However, the situation has now changed. Since mid-May, the share of bitcoin has been gradually increasing, and altcoins have been losing in value much more than the first cryptocurrency.
As of June 17, 20:00, the dominance of Bitcoin is 43.7%, Ethereum – 16.9%.
Usually, during the correction and stabilization of the rate after a sharp increase, the share of bitcoin begins to prevail over altcoins, explained the co-founder of BitCluster Sergey Arestov.
He explained that altcoins are rising faster in price but also falling sharply.
“This spring, we saw a multiple rise in some altcoins exclusively on the hype,” Arestov said. He is confident that altcoins will start appreciating faster than bitcoin again if the market returns to growth.
Altcoins have always reacted to the movement of bitcoin with a certain lag, added Vitaly Kirpichev, director of development for the TradingView platform in Russia. He explained that this connection has always been inextricable, but now the situation may change.
Now more and more attacks on bitcoin are heard in connection with the non-environmental friendliness of mining. For this reason, the emergence of a strong eco-friendly alternative could weaken the correlation between bitcoin and cryptoassets that rely on ecology, Kirpichev said.
According to him, Ethereum could become such an alternative when its network switches to Ethereum 2.0. This solution will move the network to a Proof-of-Stake (PoS) consensus, which does not require miners to maintain.
The operability of the network is ensured by the holders of digital coins, for which they receive a reward. This process is called staking.
“Everything will depend on market conditions, the environmental friendliness of mining and Chinese regulators. All of these components will affect the price of cryptoassets. If everything turns out positively, then we will be able to see multiple growth again, ”Arestov concluded.
