In the price analysis of Tuesday 16 July, we talked about the dominance of bitcoin compared to the rest of the cryptomarket.
More than 67 percent of all value on the cryptomarket is now determined by bitcoin. That would have been different, at the beginning of 2018 the heyday for altcoins. Bitcoin then represented only 35 percent of the cryptomarket.
For this change we look in this analysis at the value of altcoins expressed in bitcoin. By altcoins we mean any coin other than bitcoin.
We look at Litecoin (LTC), Ethereum (ETH) and Ripple (XRP), and compare the situation from the beginning of 2018 with now. And don’t be frightened, the graphs may look a little different than you’re used to ?
Litecoin holds up relatively well
We start with litecoin. In the crypto community, this cryptocurrency is also affectionately called the little brother of bitcoin. And somewhere that is understandable. Litecoin looks like bitcoin in many ways. Just like bitcoin, litecoin experiments with the Lightning Network.
The rate of litecoin, therefore, shows similarities to that of bitcoin. Litecoin nevertheless goes its own way. Compared to early 2018, litecoin has fallen by 43 percent compared to bitcoin.
But 2019 started well for litecoin. Litecoin has risen much faster than bitcoin since mid-December. This is probably due to the upcoming block halving. After the block halving on 5 August, the supply of new litecoin will be halved.
Since 12 June, litecoin has fallen considerably compared to bitcoin. Will the block halving cause a price increase? The last time the value of litecoin fell shortly after the block halving. Whether that will happen now? To conclude with a cliché: past results offer no guarantee for the future.
Ethereum gets hit hard
Ethereum also has difficulty maintaining the price level of 2018 compared to bitcoin. Ethereum is a platform for decentralized applications (dApps). It therefore serves a slightly different purpose than bitcoin. Maybe Cryptokitties tell you something, those are the cute kittens that you can collect. They are collector’s items on the Ethereum blockchain.
The corresponding cryptomint from Ethereum has ether. Ether reached its highest value ever later than bitcoin. Where bitcoin reached its all-time high on December 16, 2017, it was at ether on January 12. Expressed in bitcoin, ether reached its all-time high somewhat later, namely on 1 February 2018.
The alt season of 2017 and 2018 is an important driver for this increase. ICOs were extremely popular in 2017 and early 2018. With an ICO you are one of the first to have a new crypto coin or token. Many of these tokens run on the Ethereum network.
So you needed ether to participate in an ICO. The demand for ether increased enormously, and with it the price.
But since January 2018, ether has fallen by 61 percent compared to bitcoin. In fact, ether is currently at the same level as March 12, 2017. Just before the big bull run started.
Does ether get a second chance? That could just be. Ethereum’s network will be upgraded in the coming year. The blockchain of Ethereum then changes from Proof of Work to Proof of Stake. This is a more environmentally friendly way of mining. Who knows that this development can give a boost to the course of ether.
XRP the questionable “winner” from this list
We conclude with XRP. The digital coin from Ripple has the dubious honor of being the “winner” in this series. XRP is a currency that wants to bridge the gap between the traditional banking world and the crypto world. Banks can use XRP for international transactions between different currencies.
From mid-December, the price of XRP rocketed like a rocket. On January 4, 2018, XRP reached its highest value ever with 2.77 euros. In comparison, on December 11, 2017, XRP was only worth 18 cents.
But those days now seem over, at least for the time being. Since January 1, 2018, XRP has fallen by more than 79 percent compared to bitcoin. XRP is currently at the same level as December 12, 2017, just before the previous bull run.
That does not mean that XRP has not had any highlights in between. At the end of September 2018, XRP increased considerably in value following the announcement of the new Ripple product xRapid.
Does Ripple conclude a new collaboration, or will they come up with a new product? Then the rate can just rise again.