Coinbase is revealing a deep dive on the behavior of its customers.
The leading US crypto exchange is making an internal newsletter public, which shows crypto traders on the platform are showing an “increased proclivity” to buy and trade altcoins.
Coinbase says Bitcoin (BTC) remains the king, but traders tend to show a heightened interest in the altcoins during periods of rapid growth in the overall cryptocurrency markets. Since 2019, users appear to be especially interested in six cryptocurrencies.
“…a deeper cut shows that price volatility significantly swings consumer behavior 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).”
According to Coinbase, 50% of users who make at least five purchases start by buying Bitcoin and then invest in the altcoin market.
“To the extent we believe that alternative assets and networks will provide differentiated services (beyond store of value and digital gold as Bitcoin is targeting), it will be important for the industry to build support for these other assets as well.
Bitcoin is king, and likely to remain king for a long time. But it is also paving the way for a thousand flowers to bloom.”