Bitcoin Dominance Nears 80% as Institutional Interest Surges

Crypto projects have been a recurring phenomenon over the years, with many emerging and disappearing without significant success. Bitcoin, however, has consistently stood out, particularly with the launch of BlackRock ETFs and the growing institutional interest that has largely overlooked other cryptocurrencies like Ethereum and XRP.

The past years have seen various trends in the crypto space, each with its own wave of hype and subsequent decline. In 2017, Initial Coin Offerings (ICOs) were the talk of the town, with projects like Tezos, EOS, and Bancor gaining traction. 2018 saw a focus on blockchain technology in various sectors, while 2019 was marked by Facebook's Libra project. 2020 brought DeFi and Yield Farming to the forefront, with platforms like Uniswap and Curve Finance leading the charge. 2021 was the year of Non-Fungible Tokens (NFTs), and 2022 saw the rise of Decentralized Autonomous Organizations (DAOs) with projects like Aave, ApeCoin, and Defi Coin. 2023 introduced Ordinals, which are NFTs on the Bitcoin blockchain, and 2024 is expected to see the rise of memecoins like Fartcoin and popcat.

Many of these projects have been criticized as scams, with altcoins boasting superior transaction speeds to Bitcoin, such as Bitcoin Cash (BCH), eventually being overshadowed by the Lightning Network. Stablecoins, however, have proven to be a reliable option for traders looking to close positions without triggering taxable events, as well as for citizens in countries facing hyperinflation. They also offer a cheaper alternative for international payments compared to traditional bank transfers.

Despite the hype around various crypto projects, many have been dismissed as scams, enriching only a few Venture Capitalists (VCs) and their influencers. The modus operandi typically involves insiders selling their pre-mined cryptos as the hype builds, with 99.9% of cryptos ultimately failing. Even prominent cryptocurrencies like Ethereum and Solana have seen significant drops against Bitcoin.

The sentiment among some traders is that the crypto market has lost its luster, with many now viewing it as a scam. The genuine excitement and conviction behind early ICOs have given way to skepticism, with new crypto projects often dismissed as VC scams. This shift in sentiment has led to a permanent bear market for altcoins against Bitcoin, with even Ethereum's founder, Vitalik Buterin, acknowledging that Ethereum's future is uncertain.

Bitcoin, on the other hand, has continued to dominate the crypto market, particularly with the launch of ETFs by BlackRock. Institutional investors have shown a strong preference for Bitcoin, with ETFs backed by Bitcoin attracting nearly 50 billion dollars, ten times more than Ethereum. BlackRock has also indicated that it will not launch any other crypto ETFs besides Bitcoin and Ethereum, citing strict criteria that other cryptocurrencies, including Solana, do not meet.

The decoupling between Bitcoin and other altcoins is evident, with Bitcoin's dominance now close to 80% excluding stablecoins. This trend is expected to continue as institutional interest in Bitcoin grows, with several hundred companies already holding more than 1.1 million bitcoins. The sentiment among investors is that it is not too late to capitalize on Bitcoin's rise, with some analysts predicting that it could reach 260,000 dollars within five years.