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How Cryptocurrency Market Becoming Even More Concentrated?

Although we see Bitcoin dominating the digital currency market ever since it was coined in the market a decade before, we know this domain becoming more concentrated and focussed when compared to other coins. The crypto coins like BTC, ETH, and Tether today account for around 90 percent of trading volume in the digital asset market this year. One can find the three among the top ten digital currencies reaching a good height claims the researchers like Messari. This change soon followed up a brutal crash in the digital currency, which took place in 2018. Still, then it returned into its original shape, going much beyond the gleam the digital currency, particularly bitcoin, had. It went to the extent that even the pandemic was not to derail it, and the fact of the matter is, it did soar to a huge level reaching 65K USD per BTC, which is huge.

However, post-March, there seemed to be a market crash again, and the price of Bitcoin came crumbling down by 50 percent. When it carried the value of 64K USD, it went down by 32KUSD, so one can imagine the same downfall. This month, it was reported that more than 5k other digital coins were seen listed over the digital exchanges this month. When searching for safety issues, several investors were seen flocking over the coin called Tether, which is regarded as the so-called stable coin that maintained the key value. While many of the investors concerned about the safety thing were seen getting attracted towards this coin – Tether. It is regarded as a stable coin by many hence experts feel that it is not going to deviate much, and it can even employ a lot like a conduit when it comes to buying other coins.

Historically speaking, we see Bitcoin not dropping to the extent as other smaller digital coins and currencies have gone down during the recession or market crashes. The experts call this to be the beauty of Bitcoin, which has managed to shine a bit, even going down in terms of its value in the recent past. And the hike again in recent times to some percent is a classic example of this argument. Explore more on this topic on portals like Bitcoin Code.  We have seen the coin going through some of the so-called halving things when we see a number of new coins being issued to the PC supporting the network like a reward that was reduced. The enthusiast was also made with the case that seemed coming along recently, which can be called as the hedge found against the inflation coming along with the central banks that are seen seeking in order to boost the growth amidst the tough times of pandemic due to Covid 19.

On the other hand, we see another digital coin – Ether which seems to be in a leading position as far as digital ledger technology is concerned. It has allowed the implementation of things like autonomous transactions that are being regulated with the help of software programs and applications. It is therefore widely expected to see something new and enhancing technologies joining this year. Of late, ETH has emerged in a decent way taking the toll to 16K USD, which is certainly a good growth for any digital coins. Many experts feel that although the real picture about its growth and prospects would appear in the coming months, choosing it to choose at this moment can be a sagacious choice for all. Thus if people are making their minds to invest in ETH, they are most welcome, claim the experts.

This is more true, especially when the digital coin BTC has been affected in recent times, slashing down to the new low this year from 64K USD to 32K USD; it can be a volatile option in the coming months also. Secondly, it is yet not affordable for many as there can be investors who might think of coming with an alternative to BTC, and thus ETH would prove a better deal in many ways. So the experts feel that the best time for the investors is now and that they should not shy away from putting their money in digital currency as its market is becoming too concentrated.