Bitcoin Dominance Has Remained Under 40% for More Than 3 Consecutive Months
Since Nov. 29, 2022, Bitcoin’s market capitalization has risen to more than $325 billion. At the time this article was written, bitcoin’s overall market value ( BTC ) is approximately $328 billion. This represents 38.3% of the total crypto economy’s $856,947.917.107 market capital.
The market cap of ethereum ( ETH) is currently around $155.38 Billion, or 18.1% of the total $856 billion. BTC’s market dominance was greater than 90% from the time it gained its value in 2010 and continued to the second week Nov. 2014.
The crypto market dominance refers to the size of the coin’s market capitalization relative to the total market capitalization of all digital assets. BTC’s market dominance dropped below 90% in November 2014 but remained above the 80 percent range until the beginning of March 2017.
In essence, BTC had a market superiority of 90% during the first 61 months, and it rose to above 80% after Nov. 2014. It was over 80% for 33 consecutive months. There were only a few occasions in January 2015, March 2016 and May 2016 when BTC’s market dominance dropped below 80%.
Bitcoin dominance has been below 80% for 68 consecutive months. It’s also struggled to maintain the 40% range in recent years. BTC’s market dominance in terms of capitalization was above the 40% range from May 15th, 2021 to August 27th, 2022. This span was approximately 15 months.
Ethereum, Tether and Dogecoin Market Dominance levels Rise
It’s been more that three months of Bitcoin dominance under the 40% range. This dominance hasn’t been this low since May 2018, however. Logarithmically, ethereum’s market dominance ( ETH) has increased significantly since Jan. 2020.
ETH dominance has increased 130.86% from Jan. 2020, while Bitcoin dominance has gradually fallen 41.96% over that same time period. Between January 2020 and today, or approximately 35 months, tether ( USDT), market dominance increased 285%, compared to the total value of more than 22,000 crypto assets.
BNB has seen its market dominance increase by 440% in the past 35 months, while USDC’s dominance increased by 2,500%. As with bitcoin ( Bitcoin), market dominance for xrp ( XRP has fallen 47% over the past 35 months.
The dominance levels of BTC and XRP have suffered the most severe declines of any of the top ten digital assets according to market valuations. The dominance level of the meme token dogecoin (DOGE), however, has risen 1,100% over the past 35 months.
Many people don’t place much value in market capitalization or dominance data for digital currencies. A bitcoin maximalist might say BTC’s market capital is everything. Others may argue that meme coins like DOGE should not be compared with blockchains that weren’t meant to be jokes.
Many crypto supporters believe that market dominance levels provide meaningful data. For example, Bitcoin and ethereum can be seen as being competitive in market dominance levels. This can have an important impact on the market. Most often, the market’s dominant crypto asset follows the BTC and Ethereum prices.