Bitcoin Dominance Down As Market Hits $2 Trillion, Altcoins Are Taking Over
Bitcoin market dominance continues to decline as the markets make their way back up the charts. The top cryptocurrency has seen its market share consistently dropping as investors get interested in altcoins. Over the five years since it has been in operation, Ethereum now has a bit under half the market dominance of the digital asset. This has translated to altcoins like Ethereum rallying despite what direction the price of bitcoin is headed.
Now, once again, as is the same with all bull markets, the altcoins are breaking away from the influence of bitcoin. As the bull rally continues to rage on, alts are creeping up to steal more market share for themselves. Just this year alone, BTC has lost over 30% of market dominance. Starting out the year in the 73% range, to where it now sits at 44.13%.
BTC market cap dominance down to 44% | Source: Market Cap BTC Dominance on TradingView.com
Although BTC continues to have the highest market cap of all, alts are seeing increasing numbers. Ethereum’s market cap has seen another upward trend that is sending the asset’s total market cap towards $400 billion. Coming hot on the heels of the London Hard Fork that brought increased interest into the asset.
Total Market Cap Hits $2 Trillion
The crypto total market cap took a severe beating down three months back when it crashed down from its all-time high of $2.4 trillion. Spending the last three months in a perpetual state of sluggish movement that looked to be the beginning of a brutal bear market.
Total crypto market cap hits $2 trillion for the first time in months | Source: Crypto Total Market Cap on TradingView.com
A bounce back in the prices of cryptocurrencies all across the market has seen the market cap recover. Breaking the $2 trillion mark for the first time since the crash and now, indicators show that the market could be on its way to breaking the record high. The rebound in the crypto market cap has now seen renewed interest in the market.
Bitcoin and altcoins alike have rallied in the past couple of weeks, leading to a breaking of $2 trillion. More projects are fueling the interest of their investors. Projects like Cardano and Ethereum continue to be top of mind in the market. Their continued dedication to making their network optimal drives continued faith in the market.
Altcoins Will Rally With Or Without Bitcoin
The market dominance of BTC shows that altcoins are on their way to being completely independent of what is happening to the top crypto. Prices of cryptocurrencies have historically always rallied behind bitcoin. But it seems that that era is coming to an end.
Related Reading | Why A Shocking Altcoin Season Could Be On The Horizon
Soon, some altcoins will have taken enough market share from bitcoin to put them on almost equal footing. This will mean that the prices of these alts with high market dominance will also determine the direction of the market, regardless of what direction BTC is facing.
This is why “alts season” is a popular saying in the market. Every time altcoins take market share from the top cryptocurrency, the market sees a rally in the prices of alts. Whereas at the same time, the price of bitcoin could be stagnant or even be experiencing a downward trend while alts record massive gains.
Featured image from Personal Financial, charts from TradingView.com