During May and June, even in bears and other drastic moves, tokens were still performing well against Bitcoins. So far, in July, Bitcoin has proven its dominance through a steady performance with the US dollar.
Why is Bitcoin king at the moment?
In the past three months, tokens have had a solid base to increase volume and price, mainly due to two main factors: Ethereal's recognition is not US Securities and Exchange Commission's ( SEC and Coinbase to integrate 2 more tokens in the near future.
As reported by CCN earlier, on June 15, for the first time in its history, the SEC has made it clear that BTC and ETH are not considered securities under United States financial law. SEC emphasizes that both coin is maintained by a group of decentralized developers and does not benefit from a single entity.
The SEC's endorsement of the MOF and ETH eventually led to Coinbase, the world's largest electronic money and brokerage company, pursuing the direct addition of tokens, particularly to its efforts. Coinbase initially intended to integrate into Coinbase Pro to circumvent the entire process of complying with strict US securities regulations.
The Coinbase team rejected the uncertainty surrounding the nature of the ERC20 token, switching to the Basic Attention Token (BAT) - a token used by the Brave Browser and the 0x (ZRX) based on Paradex, by actively cooperating with the SEC of the United States and local financial institutions.
However, despite the rapid improvement in the regulatory aspects of tokens and the electronic money trading market, tokens continued to lose their independence throughout July, even tending to be against Bitcoin.
The dominance of the BTC began to rebound, first reaching 40% and finally recovering to 45%, which it has not been able to achieve since November 2017, when its dominance index was 58, sixty seven%.
Over the past 24 hours, both digital assets and large tokens - those that have performed well against both Bitcoin and the U.S. dollar during early 2018 - have fallen more than 10% on average, while Bitcoin maintains The $ 7,300 support level is around $ 7,338.
As of July 20, Aelf (ELF), Ontology (ONT), ICON (ICX), 0x (ZRX), Zilliqa (ZIL) and Tron (TRX), all recorded gains of 50 to 200% with BTC in April, with ICX dropping to 0.0001835 BTC, from the peak of 0.0009194 BTC in January.
The reason behind the domination of Bitcoin
In the bear market, predominant electronic money tends to outperform small tokens and digital assets as investors look for coin values that are more stable than their counterparts. Low market.
Thus, in the last 48 hours, while Bitcoin, Ethereum and Bitcoin Cash decreased by only 1 to 3%, the tokens decreased by 7 to 20% compared to Bitcoin.