Japanese Crypto Traders May Be Leaving Altcoins Behind

The vast majority of Japanese crypto traders that have started to enter the market in the past year may invest in Bitcoin only.

According to data released by the Japan Virtual and Crypto Assets Exchange Association (JVCEA) on Aug. 19, the dominance of Bitcoin compared to altcoins on the Japanese market in April reached more than 87%. No other token represented more than 6% of the monthly traded value. The number of active accounts for spot crypto trading in Japan rose by 13,987 in the same month, an all-time high at that time.

“It seems like Japanese investors’ overall interest in altcoins has been shrinking over time relative to their interests in Bitcoin,” said Yuya Hasegawa, a market analyst at Japan-based crypto-exchange bitbank. “Given the growth in the number of active accounts, the vast majority of the newer market participants in Japan, particularly since last summer, are likely to be interested only in Bitcoin.”

Dominance chart for crypto monthly traded value in Japan. Source: JVCEA

Hasegawa’s review reveals that XRP was one of Japan’s biggest crypto-traders losers. The altcoin once accounted for about 40% of the monthly traded value in the crypto market in Japan. But that figure fell to nearly 5% in April. In February, Bitcoin (BTC) also briefly lost ground to MonaCoin (MONA). But recovered its supremacy after the early stages of the March pandemic.

According to CoinMarketCap numbers, Bitcoin’s supremacy worldwide hasn’t surpassed 70 percent since Q1 2017. As of this writing, the coin represents approximately 58% of the total crypto-capitalization of $373.6 billion. Its lowest point in 12 months.