Altcoin Market Capitalization Shrinks Despite Volume Boost Since 2017

At present, the combined capitalization of the 2,022 crypto assets with a known market cap was roughly $222 billion.

On Nov. 19, 2017, just weeks before the current all-time highs would be set for the price and capitalization of Bitcoin and the crypto market overall, the 985 tokens with a known market cap represented a capitalization of around $244 billion — a similar zone to where the market is at currently.

However, with the capitalization of Bitcoin (BTC) having grown 15% from $134.1 billion to $154.6 billion during the 24 months following November 2017, more than twice as many altcoins are competing for an increasingly shrinking share of the combined crypto market cap when compared to the altcoin bubble of 2017.

Altcoins compete for diminishing market share

While 2019 has seen BTC produce an impressive recovery, the majority of altcoins have lost a significant market share when compared to 2017.

As of Nov. 17, 2018, the combined crypto capitalization was approximately $186 billion after having shrunk by 21.7% over 12 months. Since November 2017, the dominance of BTC had fallen from 56.5% to 52.6%, with altcoins gaining an overall 47.4% market share of crypto capitalization.

However, the number of tokens with a known capitalization had risen 75.8% to 1,732, increasing competition among altcoins for a shrinking pool of liquidity — with the combined capitalization of altcoins having dropped from $107.2 billion to $86.8 billion just 12 months later.

Despite the number of crypto assets having increased by a further 16.7% since November 2018, the combined altcoin capitalization reduced by roughly 8% to $80 billion during the past year. As such, altcoins have seen increased proliferation in the face of a declining pool of liquidity for two consecutive years.

Altcoin capitalization centralizes among top markets during 2019

Between November 2017 and November 2018, the relative market share of alternative cryptocurrencies became more pluralized, with the share of…

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