The dominant cryptocurrencies in play

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The Moneybrain team looks at the market’s chain of command.
IN the fast-changing world we inhabit, there are constantly new trends to keep up with, be these political, ideological shifts or otherwise.
The world is inherently dynamic and therefore, we must ensure we meet the dynamism to come and not the dynamism that has been.
This couldn’t be more true than in the world of crypto, where new cryptocurrencies are founded daily and the value of old and new oscillates as the new order sets in.
What do you need to know to avoid investing in yesterday’s news?
In crypto, it is helpful to understand the chain of command, which can be best described as more dominant and established cryptocurrencies like Bitcoin.
This currency has stood the test of time in the face of the more established might of fiat power. This means it commands a great deal of the total crypto pie, between 55% and 58% to be precise. Ethereum, on the other hand, holds a smaller but still substantial share, between 13% and 17.75%. Together, these two cryptocurrencies control approximately 70% to 73% of the market.
The medium-to-long-term price discovery of these currencies is underpinned by different value propositions:
Bitcoin benefits from a limited supply, similar to gold and the precious-metals markets, with a cap at 21 million coins, which can potentially increase its value over time as demand for crypto grows.
ETH/Ethereum’s value fundamentally comes from its network usage, including smart contracts, DeFi apps and the creation of new tokens.
Understanding these dynamics helps to craft a crypto portfolio that stands the test of time, balancing between established players with proven track records and newer, potentially innovative projects.
In the crypto world, there are no sure bets but understanding the technology and monetary mechanisms that underpin the value is key to responsible custodianship of a crypto portfolio. Join us next week when we turn our Moneybrain lens to trends.
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