In recent days, Bitcoin’s dominance in the market fell below 40%. Only Bitcoin and Ether have 60% of the total value of the cryptocurrency market.
The cryptocurrency market has suffered a very steep decline in recent days. The value of Bitcoin has fallen by around 20% in a week and its total market capitalization returned below USD 1 trillion. Besides, the market capitalization of cryptocurrencies in general fell from USD 2 trillion. However, Bitcoin has regained some of the dominance that it had lost, amid the market’s red numbers.
Bitcoin’s market capitalization once again approached 45% of the total value of the market, after approaching all-time lows of dominance, according to data from CoinMarketCap. In other words, altcoins have suffered the most during the current situation of the market despite the crash in the pioneering cryptocurrency’s price.
Most major altcoins have lost a larger percentage than Bitcoin in the last week, according to the same source. Polkadot (DOT), Internet Computer (ICP) and EOS, among others, have suffered drops close to 50% in that period.
Solana is the only cryptocurrency in the top 30 that has experienced a decrease in its price below 10% in 7 days. Meanwhile, the average depreciation of cryptocurrencies is around 35%, taking into account those with higher market capitalization.
At the beginning of May, a handful of cryptocurrencies had the total value of the market, despite the existence of more than 9,500 crypto assets.
CoinMarketCap currently reflects that there are more than 10,000 cryptocurrencies on the market. However, almost half of the total value corresponds to the first cryptocurrency. When adding Ether (ETH), Ethereum’s native cryptocurrency, only two cryptocurrencies have more than 60% of the market.
“Altcoin Season” Suffers a Steep Fall
Bitcoin had been steadily losing dominance before the general crash of the cryptocurrency market on May 19th. Just a day earlier, the dominance of the pioneering cryptocurrency was below 40%, but it rose rapidly the next day.
At the time, the market was clearly in the so-called “altcoin season” as most major cryptocurrencies had better returns than Bitcoin.
After the general crash of the market, there now seems to be a reversal of that situation. The altcoin season, measured by percentage records of the top 50 over three months, remains. However, in a 30-day range, most altcoins no longer outperform Bitcoin, according to data from blockchaincenter.net.
The price of the first cryptocurrency is almost 50% below the all-time high above USD 64,000 that it reached in mid-April. However, some cryptocurrency market analysts believe that the bullish cycle is not over yet. They hope that Bitcoin will recover, but it will not be a quick process as it could take months, according to Willy Woo.
Despite the severe sell-off that the current market crash has caused, there is still speculation about whether it would stop the bullish market. Some consider that this cleansing or correction should have occurred before and predict a price of thousands of US dollars per unit.
By Alexander Salazar
