Bitcoin’s dominance in the market has fallen by 30% so far in 2021. Ethereum’s native cryptocurrency Ether (ETH) and other projects are trading at significant levels.
There is a growing decline in the dominance of Bitcoin (BTC) in the market and the crypto asset already stands at 40%. The main cryptocurrency on the market had not recorded such a low figure since June 2018. On that date, its market capitalization represented between 39% and 41% of the entire market.
So far this year, Bitcoin’s dominance has fallen by 30%. Taking into account that its dominance was almost 70% on January 3rd, that is a significant figure. The percentages make it clear that the market is in a full season of alternative cryptocurrencies or altcoins.
The Dominance of Bitcoin Is Approaching All-Time Lows
Many traders and investors are putting their funds in other projects hoping to get higher returns. Those who invest in altcoins believe that these cryptocurrencies could grow much more than Bitcoin. The pioneering cryptocurrency is currently trading at around USD 46,000 per unit, according to data from CoinGecko.
Due to the current drop in Bitcoin’s dominance, the cryptocurrency is approaching its all-time lows relative to this metric. Data from CoinMarketCap indicates that Bitcoin’s dominance fell to 32.8% in January 2018. At the time, Ether (ETH) was the main rival of Bitcoin, following it with 18.7%.
The situation with these two cryptocurrencies is repeating itself today, but the total market capitalization is much larger. It is currently between USD 2.2 trillion and USD 2.5 trillion. Right now, Ether exhibits a dominance of 18.4% while Binance Coin (BNB) is in third place with 4%.
These Are Some Tokens and Altcoins That Have Outperformed Bitcoin
According to metrics from the Blockchain Center service, at least 45 altcoins have outperformed Bitcoin in the last three months. The main cryptocurrency on the market has advanced by 3.1% in this period while other tokens and crypto assets show advances of three to four digits.
For example, MATIC has risen by 1,370%, going from USD 0.019 per unit on January 1st to USD 1.71 on May 16th. The crypto assets Dogecoin (DOGE) with 819%, Ethereum Classic (ETC) with 581%, and BitTorrent with 459% have also attracted significant investments. When it comes to ETC, the cryptocurrency is taking advantage of the rise of Ether. Even though their names are similar, the former is a forked project.
Bitcoin has accumulated a total of five and a half months in decline in the market. In April, the dominance of BTC dropped from 50% for the first time after almost three years. Although the cryptocurrency that Satoshi Nakamoto created has lost dominance, its price has reached new all-time highs since October 2020. Bitcoin’s rally peaked on April 14th, leading the cryptocurrency to trade at USD 64,863.
Billionaire entrepreneur Elon Musk announced that his electric car company would no longer accept payments with Bitcoin. He argued that he made that decision because of the alleged environmental impact of Bitcoin mining.
By Willmen Blanco
