Is it time for the Altcoins to break up from Bitcoin?
A little explanation about the title
When I say Bitcoin I am referring to the top 10 or 15 crypto that one finds on site like coinmarketcap.com
The decrease in Bitcoin dominance is good
Back in the days there was a time when Bitcoin and Ethereum dominated the crypto space (well they still do though to a lesser extent in the % terms) and controlled the move of the alt coins as well.
When Bitcoin and Ethereum moved up it was in tandem and invariably it squeezed money out of the othe alt coins.
Perhaps it was the time when a lot of altcoins were there for the name sake and had little or no use case.
So a decrease in dominance should lead to some king of price decoupling between the altcoins and Bitcoins of the world.
This could have been one possibility that has not played out like this.
A lot has changed over time
With time a lot of altcoin projects have put in real hard work to bring real time application and utility in the crypto space.
This gives them tremendous value and reason to get support from the community and investors alike.
Yet the out flow of money can squeeze the life of the altcoin project.
Bitcoin going down can be a death knell for the altcoin projects.
With the bitcoins current range bound move a lot of money has flown out of the crypto space and this holds true for the altcoins as well.
So many altcoins which had a decent valuations and were looking to grow at a decent pace have been reduced to penny altcoins with little value in Satoshi or US $ terms.
This immense devaluation would mean not only money moving out of the project but also little or no money to spend on project development and community and promotional activity.
The above chart shows how the Bitcoin dominance has been declining over time.
Now let us liik at a 3 month chart of BTC
Observing the 3 month chart of BTC one sees that on May 7th BTC price was well over 56000 $ per BTC
Today at the time of writing this post the price is close to 36000 $
so roughly 35% down.
Now let us look at a project called Bridge Oracle with a perfectly valid use case and a vibrant supportive and active community.
Now let us look at the look at the 3 month chart
Its price on May 7th 2021 was 0.19 $ or 19 cents per Brg Token
and today the price has crashed tot $0.0029
That is the current price is 1% of what it was.
Nothing has changed for the project except for the BTC correction in the crypto market which the BRG token had no say in the issue.
The Bridge Oracle is a perfectly legit project but how can a project survive this kind of crushing price movement.
Would it not be nice to have some one like Mr Musk spare some time to tweet about genuine projects like Bridge Oracle and so many more?
Decoupling from Bitcoin is easier said than done but this should happen as the crypto universe matures.
Till than surely projects would need to find more ways to promote themselves and survive in a tough crypto space.
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