Bitcoin Dominance: Traders Flock to OG Crypto While Dogecoin and Other Altcoins Stagnate
New data indicates that Bitcoin has seen a surge in investor interest, while altcoins like Dogecoin, Cardano, and others have experienced a slowdown.
According to on-chain analytics firm Santiment, the number of Bitcoin investors has significantly increased recently. The on-chain metric being examined is the “Total Amount of Holders,” which tracks the total number of addresses on a network that hold a non-zero balance.
When this indicator rises for any asset, it can be due to several reasons. One possibility is increased adoption, as new users join the network and create more addresses.
Another contributing factor could be previous investors reinvesting in Bitcoin after selling off their holdings. Additionally, when investors divide their holdings among multiple wallets for privacy reasons, this metric would also increase.
In general, an increase in the Total Amount of Holders indicates net adoption, which is seen as a positive sign for any blockchain in the long term.
Conversely, a decrease in this metric suggests that some investors have chosen to exit the cryptocurrency space and have emptied their wallets.
The chart below illustrates the trend in the Total Amount of Holders for several top assets, including Bitcoin, Ethereum, XRP, Cardano, Dogecoin, and Chainlink.
Changes in the number of investors for top cryptocurrencies | Source: Santiment
As depicted in the graph, Dogecoin experienced rapid adoption at the beginning of 2024, with a sharp uptrend in the Total Amount of Holders. However, this growth was short-lived, as the metric has since flattened for the memecoin.
Similarly, other altcoins like Chainlink and Cardano have also seen stagnant activity in this metric during this period. On the flip side, Bitcoin witnessed relatively flat movement in the number of investors earlier in the year, but has experienced an uptrend in this metric in recent months.
It’s possible that investors were initially drawn to Dogecoin and other networks, but with the current bearish market conditions, traders are reverting to the original cryptocurrency.
Overall, Dogecoin’s number of holders has increased by 13.8% in the past three months, while Bitcoin’s growth stands at 2.6%. Given Bitcoin’s larger userbase, the relatively small percentage increase could be attributed to that factor.
During this period, Cardano is one of the few networks that has seen a slight decrease of 0.1% in the Total Amount of Holders.
BTC Price
Bitcoin has been struggling to stage a recovery, with its price currently hovering around $63,000 after a recent failed attempt.
Bitcoin’s price has been on a downward trend | Source: BTCUSD on TradingView