Bitcoin has been the most important since its introduction in 2009 Cryptocurrency. As a result, Bitcoin has dominated the cryptocurrency market. However, the dominance has decreased this year, especially in the first months up to May.
For most of the past decade, Bitcoin market dominance remained above 50%, meaning that the leading cryptocurrency represented more than 50% of all crypto for most of crypto history.Market capitalization mattered. At one point, Bitcoin’s market capitalization made up more than 70% of the total market capitalization of cryptocurrencies.
Bitcoin’s peak share continues to decrease from cycle to cycle as more and more new players emerge. The trend is changing as more digital currencies are created and the crypto space becomes more diversified, with NFTs (non-fungible token), DeFi (decentralized finance), GameFi, meme coins, etc.
There are new ones Blockchain-Networks like Solana, Fantom, Cardano, Binance, Polkadot etc that have excellent use cases in the market which is driving investors and developers alike to adopt them. Investors often prefer altcoins to bitcoin. As a result of the rise in these altcoins, Bitcoin’s market dominance has declined.
Bitcoin Market Dominance Chart
Bitcoin’s market dominance will drop below 40% when new crypto coins hit the market
At the moment the dominance of the BitcoinMarket at just over 40% as the graph above shows, while the trend is down as new altcoins hit the market. The dominance will eventually drop below 40%. Its market cap has fallen below $ 1 trillion and is currently at $ 888 billion. Bitcoin price is in a bearish trend while certain cryptos such as Avalanche (AVAX) and Terra (LUNA) continue to make gains, meaning that their overall market dominance is increasing while Bitcoin’s dominance is decreasing. It fell below 40% three times in 2021 and it seems like the dominance is finally going to drop below that level. It has not risen above 50% since falling below this level in May, so a similar scenario may now develop.
Source: Crypto News Deutsch