Bitcoin’s market share of digital currencies stands around 78%, whiskers away from its all-time low of 75%. At the same time, bitcoin’s price hangs around near an all-time high, standing $50 above gold, but since the ETF rejection on March the 10th, it has been moving sideways, with other digital currencies advancing in market share.
Ethereum, which has recently acted as a hedge against bitcoin, has reached a new all-time high today, above $33, with its market cap at almost $3 billion.
The currency enjoys a united community that speaks of a flipping, a point when ethereum overtakes bitcoin’s market cap. Currently, they stand at just 15%, with the market seemingly still undecided on the relative evaluation of the two biggest digital currencies.
The reason is probably because there are conflicting signals. Bitcoin Unlimited has been racing ahead in network hardware share recently, but suffered an attack yesterday as the two sides engage in what can be called the very first digital civil war.
The attack has probably entrenched the two sides further, while the silent majority appears to be on the sidelines, waiting to see who wins. Others are already placing their bets, some on ethereum and some on an old, rebranded, newcomer.
The rise of Dash is the most puzzling recent event. It has increased from $10 to now above $100 in just one month. There appears to be no change in fundamentals, no announcement or recent innovation, but there has been a strong marketing push.
While ethereum refrains from confronting bitcoin by taunting its 17 seconds block time and almost non-existent fees, dash does not shy away from telling everyone they are out to eat bitcoin’s lunch.
They brag about instant payments, which technically appear no different than bitcoin’s zero-confirmation payments. They further brag about very cheap fees. They are out to lobby businesses towards accepting their currency. The spirit there appears to be that of bitcoin in 2013.
However, no one actually uses dash’s chain. They barely have 4k transactions, while eth stands at around 70k and btc at a full capacity of around 250k. Nonetheless, dash’s market cap is nearing $1 billion.
The market cap of all digital currencies combined has reached new heights, seemingly headed for $26 billion. Most prominent digital currencies are at or near all-time high. There is a feeling of boom times in many ways, but despite what seems to require a partying atmosphere, the bitcoin community – which remains the largest by far – radiates pessimism.
There is no celebration, despite bitcoin’s sideway at what just a year ago would be considered a stratospheric price. There is no boasting, no confident attitude. No taunting of Western Union, no talk about developing countries skipping the banking system straight to the 21st century, no chat about new inventions.
Instead, they appear to have dropped everything in favor of turning inwards. Ignoring all else while focusing their energy on just one parameter.
The market appears to be somewhat on hold regarding bitcoin’s fate, but the mood can turn quickly. If it does so for the worse, it may be a stampede, but it might turn in the opposite direction.
We don’t currently know. The market hasn’t decided yet, except for the drip, drip, away from bitcoin land.