There are changes in the dynamics of the cryptocurrency market, with Bitcoin’s dominance declining steadily in 2023. This creates opportunities for altcoins to thrive. According to a recent research report by Kaiko, Bitcoin’s market share has dropped from 45 percent to 27 percent in 2023. There was an 8 percent decrease in July alone. This drop in dominance has allowed altcoins to thrive and collectively hit a four-month high in dominance. Meanwhile, the best performing altcoins have been announced. Among them are cryptos such as MATIC, SOL, BNB. Here are the details…
Kaiko report: XRP, MATIC outperforms
Among the top performing altcoins according to Kaiko, XRP has emerged as a clear pioneer. XRP has steadily accumulated in the first half of 2023, as traders await a positive decision from the court. As we reported on Kriptokoin.com, XRP’s trading volume increased, making it the most actively traded altcoin of the year, following the positive outcome of Ripple Labs’ legal battle against the US Securities and Exchange Commission (SEC). Moreover, the altcoin has reached a staggering $150 billion trading volume. The massive rally in XRP price is up 52 percent from mid-June lows.
Solana, Dogecoin, Binance Coin (BNB), and Polygon (MATIC) also followed XRP as the most traded altcoins. These altcoins also performed impressively. Solana gained 87 percent in the same period, while Dogecoin gained 36 percent. XRP’s price increase was supported by the Ripple-SEC fight, which boosted investor confidence. DOGE’s rise has been attributed to Elon Musk and Twitter’s rebranding as “X”. In stark contrast, Bitcoin’s performance was lackluster. It rose only 17 percent from its low in June. However, the majority of other altcoins have suffered losses over the past few days.
What are the factors affecting the market?
XRP’s recent decline is part of the broader crypto market decline. Investors have been waiting for two days for the US central bank to announce its next interest rate move. They are preparing for the second day of the upcoming Federal Open Market Committee (FOMC) meeting. At the meeting on 25-26 July, a 25 basis point (bps) interest rate increase was expected. This, in turn, has affected the sentiment of crypto investors. Such a high rate environment is perceived as unfavorable for cryptocurrencies like XRP. It even causes some investors to turn to safer assets such as the US dollar.
Despite the recent decline, XRP has grown by over 38 percent on the monthly chart. Thus, it maintains its flexibility by adding approximately 10 billion dollars to its market capitalization in this period. The decline in Bitcoin’s dominance and subsequent rise of altcoins marks a shift in the crypto market landscape. As altcoins continue to attract attention and offer attractive opportunities to investors, Bitcoin’s position as a dominant player is being challenged. Investors need to monitor these changes closely to make informed investment decisions.
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