Bitcoin’s dominance as the greatest cryptocurrency in terms of its quantity of holders is most likely beneath threat, courtesy of new altcoins. The marketplace share of Bitcoin owners in international crypto owners has declined from 67 per cent in January 2021 to 51 per cent in June 2021, thanks to unique new altcoins that have grown from 20 per cent to 38 per cent for the duration of the mentioned period, according to a report by Hong Kong-based payments and cryptocurrency platform Crypto.com. Bitcoin’s user base for the duration of February and March stood at 65 per cent and 63 per cent in April just before it slipped to 53 per cent in May this year. The altcoins have also been consuming the marketplace share of Ethereum that narrowed from 13 per cent in January to 10 per cent in June.
“When checking the composition of crypto owners, we found that Bitcoin and Ethereum were losing their market shares. New challengers like Proof-of-Stake protocols and meme tokens showed great potential in May, especially after Bitcoin mining came under more scrutiny,” the report titled Measuring Global Crypto Users: A Study to Measure Market Size Using On-Chain Metrics noted. Altcoin adoption especially in May had led to a enormous surge in crypto customers from 143 million at the finish of April to 221 million as of June, most likely due to the fact of the influx of new customers who have been keen in coins such as Shiba Token and Dogecoin, and so forth.
However, the quantity of international crypto customers had doubled in only 4 months from one hundred million to 200 million vis-a-vis nine months taken for the user base to develop from 65 million in May last year and more than 66 million at the finish of that month to one hundred million. In May 2021, the crypto customers had surpassed 200 million and reached 221 million in June 2021. According to the report, January, February, and April have been exceptionally robust months with a development price of 15.7 per cent, 18.1 per cent, and 10.1 per cent respectively, driven by Bitcoin’s stellar functionality. However, May was also extraordinary with 43.1 per cent, provided Bitcoin and Ethereum’s price tag plunge though altcoins performed far better following Elon Musk’s criticisms about Bitcoin mining and its environmental effect. In June, the development stood at 8.9 per cent.
The second half of 2020 saw accelerated adoption of cryptos due to numerous events such as the sudden rise of DeFi in August, PayPal introducing crypto purchases to the U.S. customers in November, and institutional adoption in December from firms such as Greyscale and MicroStrategy, the report added. Crypto adoption continued in 2021 with substantial enterprises such as Tesla, Mastercard, and other people moving towards embracing digital currencies. Another considerable development was El Salvador became the world’s 1st nation to adopt Bitcoin as legal tender.