While Bitcoin has shown insolent growth since 1 January 2017, at more than 1,200%, its share of the cryptocurrency market has fallen sharply. If the "Bitcoin dominance" was over 85% a year ago, it fell below 38% last Friday - a drop partly due to Ripple's breakthrough.
At the time of writing, Bitcoin accounted for 37.6% of the digital currency ecosystem.
Decline in Bitcoin's dominance of crypto-markets.
The value of all Bitcoins in circulation today is $226 billion - up from $16 billion just a year ago.
While such growth has spurred this trend, there has been a sharp drop in the weight of the first cryptocurrency in the corner market for several months now - a market that has gradually grown since its deployment in January 2009.
Since last Friday, the first cryptocurrency weighs less than 40% of the value of all cryptocurrencies, which is currently around $600 billion.
Ripple, which is often criticized for its lack of decentralization, saw its course multiplied tenfold in December, particularly as a result of the recent partnerships it has been able to forge with Japanese financial institutions. The latter could soon use its protocol to make cheaper interbank payments.
Then came Ethereum, Bitcoin Cash, and finally the surprise Cardano, whose value multiplied by 50 since the end of November.
32 coins now exceed $1 billion
CryptoCoins In recent weeks, it has been possible to witness the emergence of many digital currencies. There are now 32 "unicorns" valued at more than a billion dollars.
There are also 130 assets ranging in value from $100 million to $1 billion.
In total, no less than 1,379 coins are traded in the markets, for a total value of approximately $600 billion.
Should we think that this multiplication of alternative currencies, which call into question the supremacy of Bitcoin over the ecosystem, could be bad news for the ecosystem?
It doesn't have to be. First of all, the Bitcoin remains the undisputed reference, the first value to which savers turn.
The increase in the popularity of Coinbase attests to this phenomenon. One might think that many investors start by buying Bitcoin, only to discover that there is a myriad of "alternative" digital currencies that take over blockchain technology.
Secondly, most of these currencies are mainly traded for Bitcoins. The first crypto-currency thus acts as a measurement standard, and remains popular with investors who can easily exchange it for "altcoins".
Finally, the Bitcoin remains a reference in terms of value reserve. Often presented as a "digital gold", it is particularly popular with populations residing in countries marked by hyperinflation.
Watch out for the Bitcoin wake up...
So be careful not to bury the first digital money too quickly. Especially since we know that a sharp rise in its price, in dollars, very often implies a fall in the price of "altcoins" in terms of Bitcoin.
In addition to having a "first-mover advantage" and a high degree of notoriety, the asset developed by the mysterious Satoshi Nakamoto could soon silence those who criticize the delays and high transaction costs that prevail over its network.
Among the answers that can be given to the congestion of the Bitcoin blocks is the Lightning Network. This one must allow to move a part of the transactions, which would then be managed "off-chain", through payment channels. Last Thursday, developer Alex Bosworth said he was able to complete the first "real" Bitcoin transaction based on this technology.
If a Bitcoin with transactions that require several hours of waiting time, and associated with consequent costs, is valued at over $200 billion, one can potentially imagine a much higher capitalization when such deficiencies will be solved...