The New Bitcoin Benchmark
This week marked a significant achievement for the Bitcoin network, as fresh data pointed to the remarkable resilience of Bitcoin amidst the turbulence faced by altcoins. Data aggregator Coinmetrics.io reported on August 25 that Bitcoin’s realized market cap recently surpassed the staggering figure of $100 billion.
Realized Market Cap Explained
So, what is this elusive “realized market cap”? Essentially, it’s a unique way of calculating Bitcoin’s market value. Instead of just looking at its total supply multiplied by the current price, this measure factors in the price at which each bitcoin last changed hands—calculate that, and voilà! Your market cap assessment potentially looks much healthier.
Record-Breaking Moments
The newfound record is just another feather in Bitcoin’s cap, as it continues to smash records with impressive stats, such as hash rate and daily trading volume. Even cryptography legend Nick Szabo couldn’t help but chime in, noting the correlation between Bitcoin’s realized market cap and its low volatility—something we haven’t seen since 2012. He remarked, “The long-term chart reflects the superior deep safety, global seamlessness, and monetary soundness of Bitcoin.” Is it just me, or is that the kind of reassurance we all need during market swings?
Altcoins: The Struggling Protagonists
On the flip side, altcoins are feeling the heat. The weather forecast predicts gloomy skies for most major tokens, as they continue to underperform against Bitcoin. Bitcoin Cash (BCH), Zcash (ZEC), Stellar (XLM), and even Ether (ETH) have all recorded significant declines in volume, leaving many investors shaking their heads in disbelief.
The Binance Coin Outlier
In this tempest of red, one token stands tall: Binance Coin (BNB). Since August 2018, BNB has strung together an impressive 44% gain against Bitcoin. Perhaps it’s the trusty umbrella altcoin traders have been looking for amidst the downpour?
Lessons from the Past
On a more somber note, veteran trader Peter Brandt has drawn parallels between the current situation and the dot-com collapse early 2000s. According to Brandt, non-Bitcoin tokens could be facing their own tech-bubble aftermath. “Following 2001-02 tech collapse, dotcoms with real value exploded. The ‘alt’ .coms went bankrupt,” he warned in June. Ouch, that’s a chilling reality check!
