Popular cryptocurrency analyst Benjamin Blunts believes that although altcoins may perform better than BTC in the short term, bitcoin’s dominance will increase in 2021.
The analyst wrote on Twitter that after analyzing the chart of bitcoin’s dominance using the Elliott wave theory, he expects the dominance of the first cryptocurrency to grow by up to 86%. However, we are talking about a fairly long-term perspective – this level of dominance can be achieved by the end of 2021 or the beginning of 2022.
At the same time, Blunts admits that in 2020, altcoins perform better than bitcoin, and this trend may well continue in the near future. The analyst believes that by October of this year, the dominance of the first cryptocurrency will continue to decline and reach 60%:
“We see that the level of dominance is falling, and will test the levels of the end of 2019.”
Note that in their letter to investors, Pantera Capital analysts also hold the opinion that in the near future, altcoins will perform better than the first cryptocurrency. However, they call for careful selection of coins for investment.
In addition, the growth of altcoins is facilitated by a sharp increase in the market for decentralized financing, observed recently – only the capitalization of the Compound Protocol exceeded $1 billion.