The overwhelming majority of Japanese cryptocurrency traders who started stepping into the market within the last year are investing solely in Bitcoin [BTC].
In line with recent data published earlier on 19th Aug. from JVCEA [Japan Virtual and Crypto Assets Exchange Association], Bitcoin’s dominance relative to altcoins within the Japanese market touched over 87% earlier in the month of April this year. No other token accounted for over 6% of the monthly volume traded. Within the same month, the number of active accounts for spot cryptocurrency trading within Japan increased by 13,987, an all-time high at the time.
“It looks like Japanese investors’ overall interest in altcoins has been shrinking over time relative to their interests in Bitcoin,” said Yuya Hasegawa, an analyst at Japan-based renowned cryptocurrency exchange bitbank. “Given the expansion within the number of active accounts, the overwhelming majority of the newer market participants in Japan, particularly since last summer, are likely to have an interest solely in investing in Bitcoin.”
Hasegawa’s analysis indicates that Ripple [XRP] was one of the biggest losers among Japanese cryptocurrency traders. The altcoin once accounted for over 40% of monthly traded value in Japan’s cryptocurrency market, but that number dropped to almost 5% in April. Bitcoin [BTC] also briefly lost ground to MonaCoin [MONA] earlier in the month of February, but regained its dominance following the first stages of the COVID outbreak earlier in March.
On the global scale, Bitcoin’s dominance hasn’t exceeded 70% since Q1 2017 consistent with recent data from CoinMarketCap. As at the reporting time, the coin represents roughly 58% of the $373.6 Bln combined crypto capitalization, its lowest point for a period of 12 months.