Can Bitcoin pull its weight? For years that has been the question dominating the fray within the cryptocurrency space, especially during its nascent phase. As the months went on, several altcoins began entering the space, with many reframing the question to, can Bitcoin pull the market?
The tussle between the Altcoin season and the Bitcoin boom all encapsulated in what we love as the crypto-spring has been well documented. However, with every bull run, comes the question, who is winning? Not in the holistic sense of the collective market growth, but in the individualistic objectives of the Bitcoin maximalists and the altcoin hotheads.
From the question of where is the market going, to the question of who is leading this surge, the altcoins or the king coin, comes the debate on market dominance. At press time, Bitcoin holds a 58.4% majority with $190.4 billion market capitalization. Binance Research took it upon themselves to give an institutional, investment-oriented perspective to this debate, via their latest poll on Bitcoin dominance holding, or not.
Conducted in May 2019, with the respondent pool comprising of institutional and VIP clients of the exchange. Over 50% of the respondents opined that the BTC dominance in the 40% to 60% range would hold till the year’s end. Just under 30% of the pool stated that dominance would increase to the between 60% to 80%, the last time the dominance was this high was April 2017, when the coin was trading at over $1,500 per coin.
Less than one-tenth of the institutional investors pegged BTC to drop down to the 20% to 40% range, which was last seen in May 2018, as the crypto-winter was just settling in.
The report also detailed what the respondents believed to be the most “undervalued segment in the digital asset industry,” based on four options presented to them, blockchain infrastructure, the lofty goal of cryptocurrency as a store of value, blockchain based services like DApps, and other categories.
Accounting for a whopping 42 percent, blockchain infrastructure offered by the likes of Ethereum, Ziliquidia, Nebulas, and Icon was considered the most undervalued. The question regarding cryptocurrencies being a store of value, payment, currency took 32 percent of the replies, while blockchain based services were considered 15 percent of the undervalued quotient, while the others category took 6 percent of the same, citing privacy coins and the overvaluation of certain projects as an undervalued aspect of the cryptocurrency industry.
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