![_Mood: watching Elon and Miley on SNL [DigitalVision via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/3U84FeWCua9d83rk41Ki7n_1_GettyImages-163296541.jpg)
![_Mood: watching Elon and Miley on SNL [DigitalVision via GettyImages]_](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Much wow, such coin... Crypto "mainstreamification" has reached a level that goes far beyond just Bitcoin. 14% of the US population now invests in cryptocurrency, and American crypto owners could double in 2021. This year, Bitcoin has nearly 2X'd in value – and altcoins have seen even bigger rallies: Ethereum is up ~400%, and Dogecoin has soared 13,000%. According to a Gemini survey: two-thirds of US adults who don't own crypto are "crypto curious.” ~60% of people who do own crypto rate their knowledge level as low.
Not just Elon... A few factors seem to be contributing to "coin crowding" — aka: people pouring into various crypto coins.
- Retail investors have more access to crypto than ever through commission-free brokerages and crypto exchanges. Savings have been padded by stimulus checks, and many are sitting at home with free time.
- Institutional investors like banks, hedge funds, and corporations have been investing in Bitcoin — some even see it as a hedge against inflation. In March, Tesla said its Bitcoin investment was worth $2.5B.
- Cultural trends: Celebs like Elon, Lil Yachty, and Jake Paul have promoted Bitcoin and altcoins (see: Elon's SNL Doge skit). Crypto convos are dominating social media, from Clubhouse to subreddits. And Bitclout "influencer coins" are apparently a thing.
- Expanded uses of crypto and blockchain tech are fueling excitement. Paypal is letting users shop at 26M merchants with crypto. Developers are building "decentralized finance" apps on the Ethereum blockchain — which is also used to mint those viral NFTs.
“Coin crowding” is here... In January, Bitcoin made up 70% of total crypto value (which was $1T). As altcoins like Doge and Ethereum have rallied, Bitcoin now makes up less than 50% of crypto market cap — which has doubled to over $2T. Now, smaller altcoins like DigiByte, VeChain and SafeMoon are gaining traction. But the Fed just warned that asset prices are vulnerable to significant declines if investor sentiment shifts. And it's possible that out of hundreds of coins, only a few might survive over time. It's a new, culturally-driven phenomenon with high volatility risk – and the long-term outcomes are still unclear.