There have been times when bitcoin’s market dominance appears to be at an end. This past week is not one of those times. As altcoin prices are dropping across the board, bitcoin’s market dominance just hit 45%. That’s the highest market dominance rating for bitcoin since April 2018.
Bitcoin’s market dominance has been edging lower over the last few years. In the early days of cryptocurrency, bitcoin was the only coin in town and had a market dominance of 100%. As major competitors like Ethereum, Litecoin, and Monero have emerged, bitcoin’s market dominance has continued dropping over time – even as the price of bitcoin has reached all time highs.
According to today’s Coinmarketcap data, bitcoin currently holds a 45% market dominance rating.
The last time bitcoin held such a strong rating was in April 2018. Bitcoin’s market dominance fell shortly thereafter, staying in the low 40% range in May and June 2018 before rising to the 45% level we see today.
Today, the world’s largest cryptocurrency by market cap has $5 billion of trading volume over the last 24 hours and a total market cap of $127.8 billion, accounting for roughly 45% of the entire cryptocurrency industry.
You don’t have to look far to see the reason for bitcoin’s market dominance. Over the last 24 hours, the price of bitcoin has slipped around 1%. Altcoin prices, however, have slipped considerably lower: Ethereum has dropped 4.89% over the same period, for example, while Litecoin has dropped 4.91%. Ripple (XRP) is one of the biggest losers over the day, dropping by 8.61%.
As pointed out by EthereumWorldNews.com, bitcoin’s surging market dominance might just be temporary:
“The current downward slide is probably due to a technical correction in the wake of the July 18 price surge,” explains Osato Avan-Nomayo at Ethereum World News. “The emergence of strong volume in the market points towards a more sustained price rally which should hold on for more than just a couple of days.”
Whatever the reason may be, as altcoins bleed, bitcoin’s market dominance continues to rise. As long as these altcoins continue to drop in price while BTC remains steady, we can expect bitcoin’s market dominance to continue to rise.
This latest surge could be a minor pullback as markets continue to climb. Bitcoin markets are showing signs of rising to $8,000 or $9,000. Even during pullback cycles, the price of bitcoin has continued to remain strong relative to the market, which suggests future price gains could be on the way.
Are investors getting sick of altcoins? Are people consolidating their positions into the largest market cap coin? Or is this just a temporary downturn in an otherwise strong altcoin market? Stay tuned to see where bitcoin’s market dominance rating goes next.