A trillion-dollar valuation gap now separates Bitcoin from other tokens.
\nAltcoin market capitalisation could be $800 billion higher, data shows.
\nA US-China trade selloff erased $380 billion from crypto markets.<\/p>\n
Bitcoin\u2019s growing dominance in institutional portfolios has created a near-trillion-dollar gap between the world\u2019s largest cryptocurrency and its altcoin peers, according to new data<\/a> shared by 10x Research.<\/p>\n The report<\/a> attributes this widening divide to a structural shift in investor behaviour, particularly among retail traders in South Korea, who have redirected funds from altcoins to crypto-linked equities and exchange-listed vehicles that hold tokens.<\/p>\n 10x Research found that altcoin market capitalisation could be about $800 billion higher if retail investors\u2014especially in South Korea\u2014had not channelled their funds into crypto-related stocks and other equity markets.<\/p>\n Altcoins, which typically rely on retail liquidity to sustain upward momentum, have failed to attract enough new capital in this cycle.<\/p>\n Historically, South Korean traders have been a major force behind the altcoin boom.<\/p>\n Local exchanges have seen altcoins account for more than 80% of total trading activity, a stark contrast to global platforms where Bitcoin and Ether dominate 50% or more of daily volume.<\/p>\n But that pattern has shifted sharply this year, leading to a liquidity shortfall for smaller digital assets.<\/p>\n From 5 November through 28 November 2024, the daily average trading volume on South Korean crypto exchanges stood at $9.4 billion, surpassing the $7 billion traded on the Kospi stock market during the same period, according to data from CCData and the Korea Exchange.<\/p>\n However, since then, 10x Research noted a steep decline in crypto activity, suggesting that retail participation has cooled significantly.<\/p>\n The report highlights that South Korea\u2019s declining appetite for riskier altcoins has been instrumental in their recent underperformance.<\/p>\n Retail investors who once drove speculative rallies in coins such as XRP, Cardano, and Solana have turned instead to listed blockchain firms and exchange-traded vehicles offering indirect crypto exposure.<\/p>\n This shift has contributed to the overall weakness in altcoin prices.<\/p>\n A recent selloff in the broader cryptocurrency market, triggered by escalating US-China trade tensions, exacerbated the situation.<\/p>\n The correction wiped out about $380 billion from total market value, with roughly $131 billion concentrated in altcoins, according to 10x Research\u2019s data.<\/p>\n While Bitcoin and altcoins both suffered declines, smaller coins bore the brunt as investors sought safety in the more established and liquid assets.<\/p>\n Bitcoin\u2019s appeal as a hedge within the crypto ecosystem has strengthened, reinforcing its dominance during market stress.<\/p>\n The selloff underscores a changing market structure where altcoins are increasingly viewed as speculative instruments, while Bitcoin\u2019s perceived institutional legitimacy provides it with greater resilience during downturns.<\/p>\n As capital concentrates around Bitcoin and select equities, the broader altcoin market faces challenges in regaining lost momentum.<\/p>\n The post Bitcoin\u2019s institutional surge widens trillion-dollar gap with altcoins<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" A trillion-dollar valuation gap now separates Bitcoin from other tokens. Altcoin market capitalisation could be $800 billion higher, data shows. A US-China trade selloff erased $380 billion from crypto markets. Bitcoin\u2019s growing dominance in institutional portfolios has created a near-trillion-dollar gap between the world\u2019s largest cryptocurrency and its altcoin peers, according to new data shared […]<\/p>\n","protected":false},"author":0,"featured_media":5193,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[100],"tags":[],"class_list":{"0":"post-5194","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ethereum"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=5194"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/5193"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=5194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=5194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=5194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Retail shift weakens altcoin liquidity<\/h2>\n
South Korea\u2019s trading activity declines<\/h2>\n
Market losses deepen amid trade tensions<\/h2>\n