According to Coinbase,“Bitcoin’s dominance alongside Coinbase customer behavior” indicates that customers who leverage the exchange still enjoy purchasing altcoins other than BTC.
“Among customers with at least 5 purchases, 60% start with Bitcoin but just 24% stick exclusively to Bitcoin. In total, over 75% eventually buy other assets,” Coinbase notes.
Coinbase says that in general, BTC is a “blue-chip asset [that] has remained unchallenged.” But the company also sees a trend where alternative digital currencies are increasingly gaining traction. “This could be for a variety of reasons, but one is largely psychological. As people feel good about their initial crypto investments (into Bitcoin), they branch out to find other possible categorical winners (as evident in the 2017 bull run). The converse is also possible, as prices drop and fear grips the market (2018–2019), a flight to crypto safety drove Bitcoin back to the forefront,” the firm adds.
“This increasing drive is in part due to Coinbase’s continued addition of new assets, but a deeper cut shows that price volatility significantly swings consumer behaviour toward non-BTC assets. This trend first appeared in 2017 and is now evident in large spikes. Notably in late 2019 (with Tezos, Chainlink, BAT, 0x, and Stellar) and again in early 2020 (driven by Ethereum, Tezos, and Chainlink).”