Bitcoin (BTC) Dominance Drops as Altcoins Cling On

Bitcoin’s dominance on the decline

Bitcoin’s dominance, i.e. the share of total cryptocurrency capitalization it represents, had already tended to decline over the year. As he gathered more than 70% of total market cap last January, it had been overtaken by altcoins at the start of the year. In April, the dominance of Bitcoin had passed the fateful milestone of 50%: since then, altcoins have represented more than half of the total capitalization of cryptocurrencies.

And the recent fall in prices has only accelerated the trend. Figures vary across data aggregators, but the dominance currently around 40%after falling continuously since the end of October:

Bitcoin Dominance Percentage – Source: TradingView

According to data from CoinGecko, this percentage even reached 38% this morning. The capitalization of BTC still hasn’t risen above $1 trillionalthough the price has partially recovered from its big scare:

Bitcoin BTC price

Bitcoin price partially recovers from its fall – Source: TradingView, BTC/USDT

The price of BTC indeed shows this morning 48,200 dollars, with a capitalization of 914 billion dollars. The milestone of 50,000 dollars seems to be the new short term goal of cryptocurrency.

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Altcoins are doing (a little) better

What sparked commentary during the Bitcoin price crash was that some altcoins seem to have partially dissociated BTC price movements. This was the case for the price of ETH of Ethereum, which fell “only” by -3.9% over the week (compared to -15.2% for BTC currently).

It should also be noted that the SOL de Solana lost -5% over the same period, where its comrades showed rather double-digit drops. Special mention also for the LUNA of Terra, which has the audacity to grow by +24.3% over the weekignoring the bloodbath.

A lasting trend?

It’s a trend that seems to be starting to emerge with the latest BTC price movements: altcoins would be less subject to the moods of the larger cryptocurrency. This suggests that their value propositions are now more distinct in the minds of investors than they have been historically.

This is an interpretation found in a recent report by Messari, which explains that BTC and ETH are not considered in the same light… But that a “flipping” is still not ready to happen. ‘to arrive :

The probability of a flippening in 2022 is perhaps 20%. […] If ETH manages to overtake BTC, it will not be because it is a superior currency, but rather because the market gives more value to the most unique computing platform […] and its growth potential, rather than digital gold. »

However, this remains notable, and it shows that the queen of cryptocurrencies has stood out from Ethereum and its host of “killers”. We will therefore continue to observe the trend in the months to come.

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About the Author : Marine Debelloir

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Deputy editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
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