Despite the stunning success of Bitcoin in 2021, many believe that it was indeed the year of altcoins. For the uninitiated, altcoins refer to all cryptocurrencies apart from Bitcoin. That includes big players like Ethereum and Solana and smaller ones like Stellar (XLM). For Bitcoin, 2021 was a year of ups and downs. After facing a global crisis with the China ban, Bitcoin went on to achieve its highest-ever price and mining rates. However, the end of the year saw Bitcoin prices falling steadily, and many who predicted the $100K mark for Bitcoin in 2022 did not seem so hopeful. On the other hand, layer-1 rivals of Bitocin are gaining prominence. Be it Ethreum or Solana or Polygon, altcoins have shown immense promise in 2021 and have been a cause of much dismay for Bitcoin purists.
What is worth paying attention to is the decline in Bitcoin’s overall market share. For a long time, Bitcoin was the only cryptocurrency to take note of. That changed primarily with Ethreum breaking into the scene with its more advanced Proof of Stake mining and smart contracts. In December 2020, more than 70% of the cryptocurrency market share went to Bitcoin. Fast-Forward to December 2021, Bitcoin barely has 40% of the market share. In other words, Bitcoin does not even account for half of the cryptocurrency market share at this moment. No matter what 2022 holds for Ethreum and other altcoins, it is safe to say that 2021 was the year of altcoins and not Bitcoin.
