Yearly Theme: Altcoins and NFTs take center stage during Bitcoin trading session.

It's time to start being honest

A few altcoins started outperforming Bitcoin (BTC) earlier this year, citing traders' expectations for risky assets. XRP token payments increased almost 8 times between January and April, and the prices of various financial tokens (DeFi), such as Aave's AAVE token and UNIswap's UNI, also increased.

Even when the cryptocurrency market was widely sold, altcoins began to hold a large slice of the overall cryptocurrency space, reducing Bitcoin to the 'best' of the market. Many “Ethereum killers” or competitors in the smart contract blockchain arena have started to grab the attention of traders, like Solana's SOL token, so-called other tokens like Polygon's MATIC. The performance of the Ethereum blockchain nearly doubled in July.

The figure below shows the market value of Bitcoin as a percentage of the total market value of the cryptocurrency, called the Bitcoin dominance ratio. The relative price declines of BTC started strongly between March and May and stabilized around 40% next month.

Boom NFT

With Bitcoin prices stabilizing around $ 30,000 between July and August, some traders are starting to get bored.

Digital graphics from cryptocurrency artist Beeple sold for $ 69.3 million during Christie's offering in March of this year. After mainstream media headlines such as the New York Times, potential investors from nonprofit (or NFT) providers have attracted many players, people have reputations and investors in the cryptocurrency industry , looking for additional investments.

Eli Tan of CoinDesk wrote in August that BAYC has become the second largest NFT series after CryptoPunks on the entire stock market. The Bored Ape Yacht Club NFT's “special price”, the lowest price in the store open at the time, was 48.8 ETH ($ 165,578). (It will increase further at the end of the year, reaching around US $ 240,500).

Owners of expensive NFT shows include American Basketball Association superstar Stephen Curry, YouTube creator Logan Paul and musician Jermaine Dupree.

Speculative activity is cyclical. Earlier this year, cryptocurrency traders embarked on full buy, but took advantage of falling prices as risk management increased. The wave of demand increases and decreases, but as Bitcoin begins to lose its relative advantage, traders will find opportunities in other cryptocurrency markets.