Why is bitcoin number 1 by market cap? It's technology is arguably worse than other crypto coins.

Here's the definition of innovation

make changes in something established, especially by introducing new methods, ideas, or products. "the company's failure to diversify and innovate competitively" introduce (something new, especially a product). "we continue to innovate new products"

By definition, if something is popular, it has to be innovative, people don't just en masse jump on the bandwagon of stuff that's been done for years.