Bitcoin, Ethereum, and stablecoins account for 80% of the market capitalization of crypto assets ─ Investors flee from altcoins | CoinDesk JAPAN | CoinDesk Japan

Bitcoin (BTC), Ethereum (ETH), and stablecoin dominance (share of total cryptocurrency market capitalization) surged to their highest level since February 2021. Investors are fleeing altcoins after the SEC filed a lawsuit against two major exchanges.

The total market capitalization of Bitcoin, Ethereum, and stablecoins accounts for 80.5% of the approximately $1 trillion market capitalization of all crypto assets, according to a report released by K33 Research on June 13. pointed out.

Amid the lawsuit by the SEC, many altcoins were deemed securities, causing their prices to drop significantly. Binance Coin (BNB), Cardano (ADA), and Solana (SOL), which are among the top 10 cryptocurrencies by market capitalization, are also down about 30% over the past week.

If the SEC’s assertion that many tokens are securities is correct, issuers and exchanges will have more burdens to register with the SEC. Popular retail trading platforms Robinhood and eToro have decided to discontinue trading in the U.S. several of the tokens pointed out by the SEC, while major market makers appear to have sold off such tokens in anticipation of a drop in demand.

Altcoins Underperform

K33 notes that the legal battle could drag on for years, capital inflows to tokens under SEC oversight will be hindered, and regulatory risks will encourage investments in Bitcoin and Ethereum as safe havens. Stated.

Decrease from high (K33 Research)

“Funds are likely to revert to a hands-off approach due to excessive compliance activity and overall low trading volumes, further reducing investment appetite for market participants. and the market downturn could be prolonged,” K33 wrote in its report.

“Over the next year, the dominance of Bitcoin and Ethereum could grow further due to the costs and risks of allocating capital to altcoins.”

Bitcoin and Ethereum are currently outperforming many altcoins. Bitcoin and Ethereum are up 57.3% and 45.4% since the beginning of the year, according to CoinDesk data.

Meanwhile, some altcoins hit new year-to-date lows, with Binance Coin and Polygon down 2.7% and 15%, respectively.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: K33 Research
｜Original: Bitcoin, Ether and Stablecoins Total 80% of $1T Crypto Market Cap as Investors Flee Altcoins