A turbulent weekend for the cryptocurrency market has seen Bitcoin’s market dominance level drop to its lowest point in three years
Bitcoin has always been the dominant cryptocurrency, as it was the first to be created. As the leading coin, Bitcoin has usually accounted for roughly 50% of the industry’s total market cap. However, the recent dip in price has seen it lose some of its market share to altcoins.
At the time of this report, Bitcoin’s market dominance level stands at 40%, the lowest it has been since 2018. Bitcoin’s market dominance level has stood at over 50% since summer 2019, with a yearly high of 69.7% achieved in January.
This latest development comes as Bitcoin’s price dipped down to the $42k region. The massive sell-off has seen Bitcoin’s price subside from the $60k region in recent weeks to currently trade around $45,000. Its market cap has also slipped below $1 trillion.
The total cryptocurrency market cap is over $2 trillion, as some altcoins continue to perform excellently despite Bitcoin’s struggles. Ether, the second-largest cryptocurrency, has a market cap of roughly $400 billion. ETH’s market dominance level is now up to 19.3%. Binance Coin (BNB) comes next and makes up 4% of the total cryptocurrency market cap, with Cardano (ADA) and Dogecoin (DOGE) taking fourth and fifth place, with dominance levels of 3.3% and 2.9%, respectively.
Despite the recent losses, several analysts believe that we are not yet in a bear market. Some of them claim that the market is near the bottom, and that cryptocurrencies will rally higher in the coming days or weeks.
Finally,
I think we're getting quite close to a bottom.
Regardless of the movements of #Bitcoin during the weekend, we see strength on #altcoins as those consolidate nicely in the $BTC pair.
— Michaël van de Poppe (@CryptoMichNL) May 16, 2021