The numbers are speaking, but the story needs to be told slowly.
As a female analyst who has navigated the cryptocurrency industry for ten years, I have witnessed too many ups and downs. When I see the total market capitalization of cryptocurrencies surpassing 3.6 trillion dollars, with Bitcoin accounting for 58.7%, my feelings are much more complex—this is not just a celebration of numbers, but a witness to an industry transformation.
Looking back to 2017, that was truly a crazy era. Bitcoin prices soared, and many people became overnight millionaires, while more lost everything overnight. The market at that time resembled a casino rather than an investment place.
I. How Bitcoin’s 'Ballast' Position Was Forged?
Ten years ago, Bitcoin accounted for over 90% of the entire cryptocurrency market. But it wasn't because Bitcoin was too strong; it was because other digital currencies were simply too weak, with most being poor imitations of Bitcoin.
Later, as various new projects emerged, Bitcoin's share once fell below 40%. At that time, many shouted that 'Bitcoin is dead,' and even some traditional finance professionals believed Bitcoin would be replaced by newer technologies.
Interestingly, every time there is a drastic market fluctuation, Bitcoin is always the one that stabilizes the situation in the end.
Take the recent market plunge on October 10 as an example: Bitcoin fell by 15%, while other tokens generally dropped more than 20%, with total liquidations reaching $19.3 billion. But when the market starts to rebound, Bitcoin is always the first to stabilize. This resilience does not come from nowhere, but from a decade of accumulated market trust.
The current market is completely different. Traditional financial giants like BlackRock and Fidelity have entered, treating Bitcoin as part of asset allocation rather than a speculative tool. Data shows that net inflows into Bitcoin ETFs have reached $12.8 billion, with a total scale of $143.4 billion—this is a completely different concept from the market dominated by retail investors ten years ago.
Institutions are playing the 'ten-year cycle,' not short-term ups and downs, which is the true reason Bitcoin can maintain nearly a 60% market cap share.
II. The Survival Strategy of Altcoins: Filling the Pit Instead of Competing for Dominance
So what are other cryptocurrencies doing? Projects like Ethereum and Solana are not trying to replace Bitcoin's 'dominant' status, but rather fill different niche markets.
Ethereum has built a complete decentralized financial ecosystem through smart contracts, with its DeFi locked value accounting for over 75% of the total market. This is quite an achievement, considering that five years ago, DeFi was just a niche concept.
Solana, with its high-speed trading capability, has attracted a large number of blockchain game users, while Cardano attracts institutional clients with compliance. These are new playstyles that have developed after Bitcoin, meeting the needs of different users.
But I must speak the truth: In terms of risk resistance, these emerging tokens are still inferior to Bitcoin. When the market truly panics, funds will first withdraw from these low-market-cap tokens and turn to relatively safe assets like Bitcoin. This is an iron law of the investment world, applicable in the cryptocurrency market as well.
III. The Truth Behind Trading Volume: Who is Really Paying the Bills?
A daily trading volume of $194 billion sounds intimidating. But as seasoned players, we all know to break it down.
One part is institutional reallocation, which usually has clear investment strategies and long-term plans. The other part is retail investors' follow-the-crowd behavior, often driven by emotional reactions such as chasing highs and cutting losses.
Compared to the market ten years ago where 'volume relied on shouting orders,' the proportion of genuinely long-term investment value in today's trading volume has significantly increased. This is a sign of market maturity and what we veteran players are most willing to see.
Many people ask me how to judge the authenticity of the market. I have a simple method: look at whether the liquidity comes from genuine purchases or purely from leveraged trading. Prosperity generated by leverage will eventually collapse, while real purchasing demand will support the healthy development of the market.
IV. Industry Transformation: From Niche Speculation to Mainstream Asset
This wave of $3.6 trillion in market value is not a result of random speculation, but a qualitative change as the industry moves from 'niche speculation' to 'mainstream asset.'
As a female analyst, I may pay more attention to risk control and social acceptance than my male counterparts. What I observe is that cryptocurrencies are undergoing a normalization process—from the margins to the center, from gray areas to compliant operations.
Of course, this path is not smooth. Changes in regulatory policies, the emergence of technical vulnerabilities, and market manipulation are all risks we must face. But the general direction is clear: Digital assets are becoming part of the global financial system.
Ten years ago, when I first started researching Bitcoin, many people thought I was wasting my time. Today, those same people have started quietly consulting me about which cryptocurrencies to buy. This shift is more meaningful than any price fluctuation.
V. Future Challenges and Opportunities
As an experienced player, I won't be easily excited or panicked by price fluctuations. More importantly, I observe changes in the fundamentals: Is technology progressing? Is user experience improving? Is the regulatory environment clearer?
Bitcoin may not always maintain a 58.7% market cap share, but its 'ballast' position will not change in the short term. Other cryptocurrencies need to prove that they are not just good concepts, but tools that can solve real problems.
For new investors entering the market, my advice is: Don't treat every project you hear about as an investment opportunity. This market has become large and complex enough, requiring professional knowledge and strict risk management.
Ten years of experience tell me that the winter of cryptocurrencies will always come, but after each winter, the industry becomes stronger. A market value of $3.6 trillion is not the end, but a new starting point.
The bet we made years ago that 'digital assets have a future' is slowly becoming a reality. But this does not mean that everyone will easily make money—on the contrary, with institutions entering, individual investors need to be more professional and cautious to survive in this changing market.
The real game has just begun. Follow Ake, and let me guide you to more firsthand information and precise points on crypto knowledge, becoming your navigation in the crypto world. Learning is your greatest wealth!
