In a recent newsletter, Coinbase’s leading US exchange, Ain the Block, revealed that most of its customers who buy Bitcoin end up diversifying their wallets with other cryptocurrencies.
His research shows that consumers tend to be more interested in altcoins during bullish markets.
More flowers are blooming
Although Bitcoin obviously the dominant asset, Coinbase sees larger than expected trading volumes with altkoyni when markets become too volatile.
The exchange first noticed this trend during the bull market in 2017, but later became more apparent in the following years when it began adding more coins, including Tezos and Chainlink.
The price of LINK exploded by 117 percent after it was added to Coinbase in June 2019.
Coinbase research shows that 60 percent of their customers choose to buy Bitcoin as their first cryptocurrency, but only 24 percent of them remain the only choice.
Why Bitcoin is still the king
That said, Coinbase predicts that soon no one will take the crown of Bitcoin:
Bitcoin is king, and will probably remain king for a long time.
While describing the rationale behind Bitcoin maximalism, the exchange mentioned a number of reasons such as high liquidity, security and decentralization.
From a purely ideological point of view, Bitcoin is also the first cryptocurrency in the world to retain its “IT factor”.