A man stands near an ad for a crypto-currency exchange in Tokyo on March 30. Photo: Reuters / Toru Hanai
A man looks at an advertisement for a cryptocurrency exchange in Tokyo. Photo: Reuters / Toru Hanai

Most Japanese crypto traders who have entered the market in the last year may be investing exclusively in bitcoin.

According to data published on August 19 by the Japan Virtual and Crypto Assets Exchange Association (JVCEA), bitcoin’s dominance in the Japanese market reached more than 87% in April, Cointelegraph reports. No other token accounted for more than 6% of monthly volume traded. In the same month, the number of active accounts for spot crypto trading in Japan increased by 13,987, an all-time high at the time.

“It seems like Japanese investors’ overall interest in altcoins has been shrinking over time relative to their interest in Bitcoin,” said Yuya Hasegawa, a market analyst at Japan-based crypto exchange bitbank. “Given the growth in the number of active accounts, the vast majority of the newer market participants in Japan, particularly since last summer, are likely to be interested only in bitcoin.”

Dominance chart for crypto monthly traded value in Japan. Source: JVCEA

Hasegawa’s analysis indicates that XRP was one of the biggest losers among Japanese crypto traders. The altcoin once accounted for about 40% of monthly traded value in Japan’s crypto market, but that number dropped to almost 5% in April, says the Cointelegraph report. Bitcoin also briefly lost ground to MonaCoin (MONA) in February, but regained its dominance following the early stages of the pandemic in March.

Bitcoin’s global dominance hasn’t exceeded 70% since Q1 2017, according to data from CoinMarketCap.