The Wolf Den #281 - Crypto Market Cap Is Concentrated
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COThe total market cap for the entire cryptocurrency ecosystem is currently around 1.4 trillion. Of the 1.4 trillion, 44% is concentrated in Bitcoin and 18.5% in Ethereum. At a first glance into the crypto market, learning that there are over 10,000 different coins may lead someone to reasonably believe that the market cap is somewhat spread out across the industry, which is actually the opposite of the truth. About 63% of the entire market is presented by Bitcoin and Ethereum. When you add up the top 10 crypto market caps, you will find that about 90% of the entire crypto ecosystem lives at the top of the food chain - the wealth is clearly not evenly distributed.Investors should consider this fact when they are weighing the risk-reward of different assets. Many below the top 50 are irrelevant, while many below the top 100 can be effectively worthless. A majority of these coins merely exist because of a small, passionate community or because someone had an idea that largely failed. Institutional money has only found its way to Bitcoin, and Ethereum to a smaller extent. Almost the entirety of the remaining market is just a retail bet.If and when there is a massive culling within the crypto space, similar to the dotcom bust, flushing out 9,900 of the +10,000 cryptos won’t make much of a dent in the overall market cap. Even if that money were to pour into Bitcoin, it wouldn’t be significant. The takeaway here is that the majority of cryptocurrencies are very much irrelevant and probably worthless in the long term. When the next bear market occurs, I expect this to become extremely apparent if it isn't already clear.All of that said, there are some amazing and likely groundbreaking projects being built that are represented by coins with small market caps. I also do not see this culling as a bad thing - the dotcom bubble burst, but gave us Amazon, Google and the other most important companies in the world. The moral of the story - choose wisely and invest appropriately.In This Issue:Crypto Market Cap Is ConcentratedBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsVisa Handled $1B In Crypto TransactionsArgentina Is Considering Bitcoin SalariesCentral Banks Are Missing Out On BitcoinThe Wolf Of All Streets Podcast Ft. Jeff BoothMy Recommended Platforms And Tools
The Wolf Den #281 - Crypto Market Cap Is Concentrated
The Wolf Den #281 - Crypto Market Cap Is…
The Wolf Den #281 - Crypto Market Cap Is Concentrated
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COThe total market cap for the entire cryptocurrency ecosystem is currently around 1.4 trillion. Of the 1.4 trillion, 44% is concentrated in Bitcoin and 18.5% in Ethereum. At a first glance into the crypto market, learning that there are over 10,000 different coins may lead someone to reasonably believe that the market cap is somewhat spread out across the industry, which is actually the opposite of the truth. About 63% of the entire market is presented by Bitcoin and Ethereum. When you add up the top 10 crypto market caps, you will find that about 90% of the entire crypto ecosystem lives at the top of the food chain - the wealth is clearly not evenly distributed.Investors should consider this fact when they are weighing the risk-reward of different assets. Many below the top 50 are irrelevant, while many below the top 100 can be effectively worthless. A majority of these coins merely exist because of a small, passionate community or because someone had an idea that largely failed. Institutional money has only found its way to Bitcoin, and Ethereum to a smaller extent. Almost the entirety of the remaining market is just a retail bet.If and when there is a massive culling within the crypto space, similar to the dotcom bust, flushing out 9,900 of the +10,000 cryptos won’t make much of a dent in the overall market cap. Even if that money were to pour into Bitcoin, it wouldn’t be significant. The takeaway here is that the majority of cryptocurrencies are very much irrelevant and probably worthless in the long term. When the next bear market occurs, I expect this to become extremely apparent if it isn't already clear.All of that said, there are some amazing and likely groundbreaking projects being built that are represented by coins with small market caps. I also do not see this culling as a bad thing - the dotcom bubble burst, but gave us Amazon, Google and the other most important companies in the world. The moral of the story - choose wisely and invest appropriately.In This Issue:Crypto Market Cap Is ConcentratedBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsVisa Handled $1B In Crypto TransactionsArgentina Is Considering Bitcoin SalariesCentral Banks Are Missing Out On BitcoinThe Wolf Of All Streets Podcast Ft. Jeff BoothMy Recommended Platforms And Tools