Cryptocurrency exchange Binance supports the idea that Bitcoin (BTC) dominance will soon fall below 60 percent. The exchange’s analytics arm Binance Research made claims that stated that Bitcoin’s current market dominance is only temporary and will not last forever.
Officials from the exchange stated that people are investing in altcoins as most altcoins are at their lowest right now. These investors provide an influx of money to many of these altcoins, the prices of which are bound to increase sooner or later.
According to the officials, the exchange believes that Bitcoin dominance will fall again as it had been below 60 percent for more than two years. Bitcoin dominance has been lower than sixty percent since May 2017 and has risen above only briefly in the last three months. Its sudden increase was abnormal and has made many people in the crypto sphere miserable.
Is Binance’s expected alt boom possible?
Many well-known analysts have commented on it while most of them agree that the market will never recover from these lows. The idea is supported by the fact that many of the top twenty cryptocurrencies have fallen to all-time lows against Bitcoin. Top of the list is XRP that also suffered due to sell-offs by its biggest holder the Ripple Labs.
Although analysts and critics may believe an alt boom impossible, this does not stop Binance from expecting one. Executives are diligently promoting its native crypto the Binance Coin (BNB). The hard work was well rewarded as BNB has managed to deliver rare returns against BTC.
Binance is one of the largest and most popular cryptocurrency exchanges in the world. The exchange is launching a futures trading platform and reportedly working on a Libra competitor.
However, an alt boom may just be a marketing strategy by Binance to gain support for its Binance Coin. Previously, the launch of the futures trading platform faced allegations of plagiarism as documents appeared to be copied from BitMEX. Therefore, the exchange’s CEO Changpeng Zhao had to issue an apology due to the episode.
