Coin Metrics released a new report saying that Bitcoin is starting to lag when compared with competing altcoins like Ethereum and Dogecoin.
Altcoins Are Now Taking Over
Bitcoin is still the world’s number one digital currency by market cap. Now it is trading for about $35,000 per unit. The asset experienced some serious dips over the last month. Dogecoin and Ethereum have shown gains and are regularly moving up the digital ladder.
Coin Metrics got a lot of information for its report by checking data from Binance. It is debatably the largest and most popular crypto exchange on the planet when it comes to daily trading volume. More statistics have been gathered from exchanges like Coinbase and FTX. Coinbase highlighted that so far, 2021 has been a year for “smaller altcoins,” suggesting that many of them surged between the months of January and May. Starting there, a serious crypto crash has taken precedence. With Coin Metrics unable to pinpoint what exactly is the cause.
Mostly, a lot of altcoin pairs are offered on Binance. This explains why the company’s trading volume for many of the world’s smaller assets likely overtook that of Bitcoin. The report says:
“ETH volume surpassed BTC volume on Coinbase by a wider margin than on Binance. Coinbase did not offer Dogecoin trading in May (although they introduced it in early June), so it did not have a Doge rush similar with Binance, but it did have a relatively high amount of volume for some other altcoins, led by MATIC, ADA and Ethereum Classic (ETC)… Continuing the trend, ETH volume edged out BTC on FTX, although not by much, but comparatively, the top altcoins made up a lower percentage of total volume on FTX than on Binance and Coinbase.”
Ethereum and Dogecoin Rises
Huobi, one of the world’s exchanges, also saw Ethereum and Dogecoin trading rise to levels beyond what people do with Bitcoin. The report continues:
“Similar with Binance, DOGE volume surged on Huobi, taking the spot as the third most traded currency by volume.”
Bitcoin is not fully cut out yet
The only place – according to the document – where bitcoin trading appears to remain dominant at the time of writing is the CME in Chicago, Illinois. The company delves in bitcoin futures trading and has recently opened the door to ETH futures, though this is still in its early stages. Coin Metrics writes:
“The markets continued to move mostly sideways over the last week. Bitcoin and Ethereum usage both stayed relatively flat, with daily active addresses dropping 2.5 percent and growing by 3.3 percent, respectively. Ethereum daily transaction fees dropped by over 35 percent week over week as gas prices continued to fall, and bitcoin transaction fees followed a similar pattern, dropping by 40.5 percent.”
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