Yesterday (May 13), digital asset exchange Coinbase’s Justin Mart published a blog post in which he analyzed Bitcoin’s “continued dominance alongside Coinbase customer behavior.”
Mart started by looking at Bitcoin’s market dominance over the past four years.
Mart then noted that although “Bitcoin’s position as the blue-chip asset has remained unchallenged,” they “see a trend where bull markets show increasing traction among alternative assets,” and he explained one possible reason for this:
“This could be for a variety of reasons, but one is largely psychological.
“As people feel good about their initial crypto investments (into Bitcoin), they branch out to find other possible categorical winners (as evident in the 2017 bull run).
“The converse is also possible, as prices drop and fear grips the market (2018–2019), a flight to crypto safety drove Bitcoin back to the forefront.”
As for “how Coinbase customers trade these assets,” Mart says although “the same large-scale trend is evident,” he can see that “retail volume on Coinbase shows an increased proclivity to purchase and trade alternative assets.”
Perhaps, one of the most interesting parts of Coinbase’s blog post is the part where Mart gives several reasons why Bitcoin has remained so dominant among cryptoassets:
- “Ethos and mission”
- “Mindshare”
- “Security”
- “Decentralization”
- “Infrastructure and liquidity
- “Technical simplicity”
- “Creation myth and intangibles”
Featured Image by “SnapLaunch” via Pixabay.com. Chart Courtesy of Coinbase.
