Cryptocurrency Market Sheds $22 Billion as Every Significant Currency Dips
Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, along with other big cryptocurrencies except Monero have experienced a decrease in value, since the cryptocurrency market fell by another $22 billion following a seeing a drop on March 6.
Within the last 24 hours, Monero has been the only major cryptocurrency to record a profit, demonstrating a slight 2 percent increase in price. In contrast, bitcoin dropped by 2.5 percent, Ether by 5 percent, Ripple and Bitcoin Cash by 3%, and Litecoin by 4 percent.
On a weekly basis, Monero is also one of the few cryptocurrencies to demonstrate a surge in cost. On March 1, the purchase price of Monero was $285. As of March 7, the purchase price of Monero remains above $360, recording a 26 percent per cent increase in cost.
The growth in demand for Monero can be attributed to the growth in interest towards privacy-focused cryptocurrencies. Amongst many cryptocurrencies with privacy features, Monero remains as the sole personal digital currency that anonymizes every trade on the blockchain network. Hence, unlike other cryptocurrencies, transactions processed on the Monero system cannot be traced.
«All Monero transactions need full mandatory privacy unlike the coins that are mentioned. In all other personal crypto currencies so far privacy is optional and hardly used, as it's complicated and/or is not supported by wallets. Zcash hasn't even 400 fully protected transactions a month, Dash uses CoinJoin mixing over Masternodes where you must await partners to mix with and it takes hours. PivX does exactly the same like Dash, but it is even smaller and you have fewer partners to combine with,» the Monero team explained in an interview with cryptocurrency analyst CryptoRand.
As governments like the US and South Korea continue to crackdown on cryptocurrency account holders for tax purposes, it's likely that the requirement for privacy-focused cryptocurrencies will continue to rise. As for Monero, since it remains as one of the few cryptocurrencies to sustain momentum during the past week, it'll have the ability to prolong its rally at the short-term.
While bitcoin has dropped by 2.5 percent, other alternative cryptocurrencies like Ethereum and Cardano have fallen by over 5 percent. In fact, over the past two weeks, bitcoin has continued to outperform most major cryptocurrencies in the market.
The dominance indicator of bitcoin has reached a new yearly high-from January to March-at 42 percent, which dropped to 31 percent in December 2017.
From its all-time high, bitcoin is down 43 percent. Meanwhile, Ethereum is down 43.6 percent from its all-time high at $1,400. Until February, Ethereum has followed the price trend of bitcoin. But, over the last two weeks, Ethereum has struggled to sustain its momentum.
In this recovery period, it is more likely the bitcoin will outperform alternative cryptocurrencies in the short term, as holders of other cryptocurrencies proceed to bitcoin and newcomers invest in bitcoin first, before moving into other assets.