Investors are confining their crypto portfolios to BTC and ETH, the world’s largest cryptocurrencies, amid Blackrock’s spot ETF filing and the industry’s run-in with the SEC. Bitcoin dominance has breached the 50% mark, whereas the Ethereum market cap has surpassed that of all other altcoins for the first time since February 2021.
Bitcoin Dominance Has Crossed 50%
Bitcoin dominance measures the proportion of the entire crypto market value made up of Bitcoin. Given that it stands at a little above 50% now, half of crypto’s total $1.14 trillion dollar market capitalization is rooted in Bitcoin. According to CoinMarketCap, BTC has a market cap of $559B as of 21 June 2023.
BTC Market Cap Dominance 1-Month, 21 June 2023, TradingView
There are multiple aspects to the surge in the BTC market dominance over the last few months. To begin with, investors have been increasingly settling for established or ‘blue-chip’ crypto assets as safe havens amid all the chaos in the market. The anti-crypto attitude of regulatory bodies and governments, especially in the US, hasn’t helped the case.
What urged investors to hoard Bitcoin over the last few days, however, is Blackrock’s spot ETF filing.
Blackrock’s Spot ETF Filing Kindles Optimism in the Market
Investment giant Blackrock applied for its own spot Bitcoin ETF on June 15, sending waves of euphoria across the market which has been dull for a few days since the SEC lawsuits went live. It fueled investor confidence in not just Bitcoin, but also the whole market.
WisdomTree has filed for spot bitcoin ETF h/t @NateGeraci pic.twitter.com/JwXj8rTs2X
— Eric Balchunas (@EricBalchunas) June 20, 2023
According to Galaxy Digital CEO Mike Novogratz, the approval of BlackRock’s ETF application would be “the best thing that could happen to $BTC.”
Many cryptocurrency analysts have also expressed their optimism about the trend. For example, James Edwards of Finder.com believes that the timing of BlackRock’s filing should provide confidence in both Bitcoin as an asset and also Coinbase in its upcoming legal battle with the SEC. When the SEC is persistent on its decision to lock horns with the crypto industry, the decision taken by these investment firms goes on to prove the confidence in crypto assets.
In fact, ARK Invest CEO and chief investment officer Cathie Wood recently added $17M worth of shares of Coinbase (COIN) to her flagship fund, Ark Innovation (ARKK). She is wildly bullish about Bitcoin and is firm on her BTC price target of $1M.
There are also arguments against the series of new ETF filings. For example, Investor Scott Melker believes it’s a disservice to crypto-native innovators who built the industry. While it will fuel the institutional adoption of the space, it also “kind of violates the ethos, and is a bit of a dishonest push away from the people who built the industry in the United States”.
Diversification is Key to Maintaining a Healthy Crypto Portfolio
According to MicroStrategy co-founder and unabashed Bitcoin apostle Michael Saylor, BTC’s market dominance will cross 80% in the coming years. The reason is not so optimistic, however. He believes that the growing regulatory pressure from the SEC will knock stablecoins and other altcoins out of the market. His vision of a crypto market is Bitcoin-centered, with maybe half a dozen to a dozen other Proof of Work tokens.
Regulatory clarity is going to drive #Bitcoin adoption by eliminating the confusion & anxiety that has been holding back institutional investors. Bitcoin dominance will continue to grow as the #Crypto industry rationalizes around $BTC and goes mainstream. pic.twitter.com/Foq4lpderj
— Michael Saylor (@saylor) June 13, 2023
Investors like Michael Saylor and Cathie Wood keep forgetting that a BTC-first crypto market will be unsustainable. The whole point of a decentralized market is to avoid the concentration of wealth in a few assets or people. If BTC and ETH keep most of the market cap to themselves, it won’t be long before the entire industry collapses.
We need more competitors, more assets, and more innovation to keep the industry alive. It’s true that the market is now crowded with flimsy projects and hollow tokens. But there are also promising projects underpinned by market-relevant utilities. They need not rely on community strength or speculation to keep going.
That said, no investor will make a decision based on the larger good. They will be focussed on their individual profits.
Can Michael Saylor’s Prophecy Come True in that Case?
Even if investors are driven by personal motives, the market will diversify into more assets in the coming months and years. The reasons are obvious.
- BTC and ETH are saturated with larger-than-life market caps. Crypto investors are adventurous, but they are not brainless to pour more money into these assets. If they were, we would have seen BTC cross $100,000 already. But instead, we have been seeing it hover under $30,000 this year.
- In the event the market pours more money into BTC and ETH than they can justify, they will inevitably burst, as we saw in 2022.
- New cryptocurrencies are emerging with market-relevant use cases that explore the potential of blockchain technology with larger rooms for growth.
- Utility tokens are largely immune to the grapples of anti-crypto regulations.
Altcoins to Invest in to Improve Your Profitability this Year
If you’re aiming for multifold returns from the market, you don’t necessarily have to wait until the BTC price touches $1M. New cryptocurrencies can turn you into a millionaire with investments as low as $1000.
But not any random new cryptocurrency will do.
Make sure the asset you go for is credible, relevant, and robust. To give you a head start in your hunt, listed below are three utility-rich altcoins that have high growth potential this year. Not just because they are in the presale stage now, but also because they have excellent use cases.
1. yPredict – AI-powered utility token with high growth potential
The first altcoin on our list is yPredict (YPRED), a utility-rich cryptocurrency backed by a comprehensive AI ecosystem designed for traders, developers, quants, and analysts. The underlying platform is primarily a marketplace for crypto price predictive models crafted by industry experts.
What is the market relevance of yPredict?
Currently, the crypto market is dumped with bots and algorithms. They’ve been helpful to traders in the initial stages, but that’s not the case anymore. Their overwhelming presence has changed the price structure of the market in undesirable ways. They are also accused of manipulating users into making specific investments.
While they cut down the time and effort involved in trading, they also mislead participants and diminish their statistical advantage. yPredict changes this.
How?
It offers a marketplace that sells crypto predictive models developed by top AI experts, quants, and analysts as monthly subscriptions. If you have enough YPRED tokens, you can subscribe to these crypto price predictive models to improve your crypto profitability.
But if you just need the basic services, the app allows you to gain access to a range of tools and metrics on the platform at no cost. All you need to do is hold YPRED tokens. This benefits the project in two ways.
- It increases the product’s exposure and gives users the chance to experiment with the product before pouring money into it. And that makes all the difference.
- It also reduces the token supply in the open market, thus supporting its price.
If yPredict succeeds in delivering its products as laid out in the white paper, it has a bright road ahead. That seems to be the case, as per the latest updates from the project:
yPredict’s first model is live and It’s available to use for free, for a limited time.
Link: https://t.co/vT15zTcmL1
Blog: https://t.co/m5tVkclzaO pic.twitter.com/SJwT7AAwlB— yPredict.ai (@yPredict_ai) June 15, 2023
2. Ecoterra – A blockchain ecosystem for user rewards and company action on climate change
One of the biggest challenges before the crypto industry today is to prove that it has scope beyond play-to-earn games, meme coins, and hollow NFT collectibles. That hasn’t been easy, as most projects have been reluctant to explore beyond the set norms.
And therein lies the massive growth potential of Ecoterra.
The green crypto project is dedicated to bringing recycle-to-earn to the forefront, tapping into the decentralized, transparent make-up of blockchain technology. It puts forward an extensive ecosystem that empowers companies and individuals to step up their contributions to climate action.
The key highlights of the platform are as follows:
- Recycle2Earn (R2E) application – Where you can earn Ecoterra, the native digital currency of the ecosystem, for engaging in environmentally conscious recycling actions. Each item you recycle will get you a corresponding amount of Ecoterra tokens.
- Carbon offset marketplace – Enables you to make a tangible impact on the environment through carbon offsetting.
- A marketplace for recycled materials – A meeting place for businesses looking to support sustainability efforts and providers of recycled raw materials like plastic, glass, or aluminum.
- Impact trackable profile – Monitor and showcase your positive impact actions seamlessly. Whether you’re a business, celebrity, or individual, the feature improves your brand image and helps you build customer/audience loyalty by demonstrating your commitment to sustainability and responsible practices.
Rather than going for a redundant play-to-earn business model, Ecoterra introduces a recycle-to-earn model. The recycle-to-earn app allows you to earn Ecoterra tokens by recycling through a Reverse Vending Machine (RVM). The project’s relevance lies in the fact that it provides an incentive for individuals to recycle, which is usually perceived as complicated.
You can sell, hold, stake or donate the tokens earned from the app.
As discussed above, Ecoterra has a large scope for mainstream adoption since it targets a diverse audience. And being a green crypto project with a climate mission, it wouldn’t have a hard time onboarding partnerships with brands and celebrities. Needless to say, the green mission makes the project largely immune to regulatory crackdowns.
