Bitcoin remains the leading cryptocurrency in the world, but its market dominance has been decreasing in recent months.
Bitcoin’s Dominance Level Now Below 43%
Bitcoin is the number one cryptocurrency in the world. It has been that way since it was launched in 2009. However, for the best part of the first decade, Bitcoin’s market dominance has remained above 50%,
The leading cryptocurrency has accounted for more than 50% of the total crypto market cap for most of history. At some point, Bitcoin’s market cap comprised more than 70% of the total cryptocurrency market cap.
However, the trend is changing as more altcoins are created, and the cryptocurrency space becomes more diversified. Bitcoin’s dominance level has been dropping for a while now. Most investors are not focusing on only Bitcoin at the moment, thanks to the creation of numerous altcoins, including the leading ones such as Ether, Solana, Cardano, Binance Coin, Polkadot, Dogecoin, Litecoin, XRP and several others.
The altcoins have excellent use cases in the market, and both investors and developers continue to adopt them. In some instances, some investors prefer altcoins over Bitcoin. As a result of the rise of these altcoins, Bitcoin’s market dominance level has been dropping.
At the time of writing, Bitcoin’s dominance level stands 42.7%. Bitcoin’s total market cap is over $1.1 trillion, while the total cryptocurrency market cap is above $2.7 trillion.
Bitcoin’s Market Dominance Level Could Drop Below 40%
Bitcoin hit a new all-time high above $67k a few weeks ago. Since then, the leading cryptocurrency has been trading above the $60k level. However, numerous altcoins, including Ether, Shiba Inu, Solana and Polkadot, have all attained new all-time highs in recent weeks.
Ether remains Bitcoin’s biggest competitor, and its market dominance level has been increasing. At the time of writing, Ether’s market dominance level stands at 19.6%, up from the 18% it was a few months ago.
If the current trend continues, then BTC’s market dominance level could drop below the 40% level for the first time in history. On the flip side, altcoins like Ethereum, Solana and Cardano would see an increase in their market dominance as their networks continue to gain more adoption.