The good thing about the crypto-verse is that you can find the best explanations for market phenomenon every time you decide to the browse the web. In this case, I stumbled upon a very interesting explanation as to why Bitcoin (BTC) is under-performing, whereas the rest of the Alt-coins keep shooting for the stratosphere.
“BTC’s under-performance could be an indication the cryptocurrency is fueling the rise in the altcoins. Moreover, most altcoins are traded against BTC. So, investors pouring money into crypto markets tend to buy BTC first and then rotate the money into altcoins. The recent drop in the bitcoin dominance rate from 45.62 percent to 37.98 percent (today’s low) also seems to suggest so.”
When you couple this explanation of the current market trends, with news of Binance adding fiat-to-crypto pairs on its exchange, one can comfortably conclude that Bitcoin might be destined for further under-performance in the markets. This is because BTC is used as the first coin of choice for traders in exchanges that do not use fiat-to-crypto trading pairs such as Binance. With USD or EUR availability on Binance, this means that users will be able to directly deposit funds on the exchange through their credit/debit cards or direct bank transfer. This then renders Bitcoin obsolete in terms of trading. As a result, demand for BTC will drop significantly and consequently, its value.
It is with the current scenario of Binance dominating the number one spot on coinmarketcap.com in terms of daily trade volume, that the addition of USD or EUR to the exchange will be a means of now measuring the true value of Bitcoin (BTC) in the crypto-verse other than a base for trading. One aspect to remember is that Bitcoin has not had a direct project linked to it like other coins or tokens. This will fuel the ongoing debate that Bitcoin has no value.
This then opens the doors for any prominent coin or token in the markets to take the number one spot from BTC. My bets are on a very unlikely candidate to do so. That candidate is EOS (EOS). It has recently edged out LTC from the number 5 spot and needs only to be valued at $187 to dethrone BTC using current market cap values.