The vast majority of Japanese cryptocurrency traders who started entering the market last year may only invest in Bitcoin.
According to data released on August 19 by the Japan Virtual and Crypto Assets Exchange Association (JVCEA), Bitcoin achieved more than 87% of the dominance of cryptocurrencies in the Japanese market in April. There is no other symbol that represents more than 6% of monthly sales. In the same month, the number of active accounts for spot trading in cryptocurrencies in Japan rose by 13,987, the highest level ever.
“The general interest of Japanese investors in altcoins seems to be dwindling over time compared to their interests in Bitcoin,” said Yuya Hasegawa, a market analyst with the Bitcoin Bank of Japan Cryptocurrency Exchange. “Given the surge in the number of active accounts, the vast majority of new entrants in Japan, especially since last summer, are likely to be interested only in Bitcoin.”
Hasegawa’s analysis shows that XRP was one of the biggest losers among Japanese cryptocurrency traders. Legacy currency once made up about 40% of the value traded monthly in the Japanese cryptocurrency market, but that number fell to nearly 5% in April. Bitcoin (BTC) also briefly lost ground to MonaCoin (MONA) in February, but regained dominance in March after the early stages of the pandemic.
According to data from CoinMarketCap, Bitcoin’s global dominance has not exceeded 70% since the first quarter of 2017. As of this writing, the coin accounts for around 58% of total $ 373.6 billion in cryptocapital, its lowest level in 12 months.