Nicholas on Nostr: Why do most altcoins lose value relative to #Bitcoin, even when the total relative ...
Why do most altcoins lose value relative to #Bitcoin, even when the total relative market cap of alts seems stable? It’s a zero-sum game in a crowded space...
The #crypto market is highly competitive, and the rankings of altcoins are constantly shifting. But there’s more going on than just price volatility—there’s a deeper structural issue.
In a 'zero-sum competition within limited market windows,' gains for one coin must come at the expense of another. The total value in the altcoin window is finite. When one altcoin rises, others fall.
Take #Ethereum, BSC, #Solana, and #Ripple—top altcoins by market cap. If a new coin like #Ton rises and overtakes BSC, it does so by taking market cap away from others. Rankings shift, but total value in the window tends to stay stable.
This means investing in altcoins isn’t just about price—it’s about surviving in a market where new entrants can erode the value of existing coins, even when the overall market cap looks healthy.
The real takeaway? As new coins rise, older coins fall in rank and value relative to #Bitcoin. Understanding this 'zero-sum competition' is key to navigating the altcoin market.
Will the altcoin market ever break out of this zero-sum dynamic? Or is it a permanent feature? Share your thoughts below 👇
The #crypto market is highly competitive, and the rankings of altcoins are constantly shifting. But there’s more going on than just price volatility—there’s a deeper structural issue.
In a 'zero-sum competition within limited market windows,' gains for one coin must come at the expense of another. The total value in the altcoin window is finite. When one altcoin rises, others fall.
Take #Ethereum, BSC, #Solana, and #Ripple—top altcoins by market cap. If a new coin like #Ton rises and overtakes BSC, it does so by taking market cap away from others. Rankings shift, but total value in the window tends to stay stable.
This means investing in altcoins isn’t just about price—it’s about surviving in a market where new entrants can erode the value of existing coins, even when the overall market cap looks healthy.
The real takeaway? As new coins rise, older coins fall in rank and value relative to #Bitcoin. Understanding this 'zero-sum competition' is key to navigating the altcoin market.
Will the altcoin market ever break out of this zero-sum dynamic? Or is it a permanent feature? Share your thoughts below 👇