Bitcoin dominance drops to 40% and approaches all-time lows

By May 16, 2021Binance
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The dominance of bitcoin (BTC) in the cryptocurrency market is declining more and more and already stands at 40%. The main digital asset did not register such a low figure since June 2018 when its capitalization represented between 39% and 41% of the entire market.

So far in 2021, the dominance of bitcoin has fallen by 30%, a significant figure if one takes into account that by January 3 the dominance was almost 70%. The percentages show that the market is in full season of alternative cryptocurrencies or altcoins.

Operators and investors would be taking their funds to other projects in the hope of obtaining higher returns. Investors assume that altcoins could grow much faster than bitcoin, which is currently trading at about $ 48,000 per unit, according to the CryptoNews price index.

The current drop in BTC dominance is bringing the cryptocurrency closer to its all-time lows with respect to this metric. According to CoinMarketCap records, in January 2018 the dominance of bitcoin fell to 32.8%. At that time, the main rival of bitcoin was Ethereum (ETH) and its native cryptocurrency, ether, which followed with 18.7%.

The dominance of bitcoin in the market is at the same levels as three years ago. Source: Trading View.

Currently, the panorama is repeated with these two cryptocurrencies, but with a much larger total market capitalization and that is already between 2.2 and 2.5 trillion dollars. Right now Ethereum exhibits a dominance of 18.4% while in third place is Binance Coin (BNB) with 4%.

Tokens and altcoins that take dominance away from bitcoin

The metrics from the Blockchain Center service show that at least 45 altcoins have performed better, in the last 90 days, than bitcoin. While the first cryptocurrency has advanced 3.1% in that period, other tokens or digital assets show advances of three or even four digits.

Some of them are, for example, MATIC, which has risen 1,370% from $ 0.019 per unit, on January 1, to $ 1.71 for this Sunday, May 16. Other crypto assets that have attracted significant investments have been DOGE (819%), Ethereum Classic or ETC (581%) and BitTorrent with a gain of 459%. In the case of ETC, the crypto asset would be taking advantage of the rise of Ethereum due to the similarity of their names, but they are bifurcated projects.

The dominance of bitcoin accumulates five and a half months in decline. In April, BTC’s dominance fell below 50% for the first time in almost three years. Despite losing dominance in the market, the price of bitcoin has grown to new all-time highs since October last year. This rally reached its peak on April 14 when the cryptocurrency was quoted at $ 64,863.

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