Dominance Debrief: 12/29 – 01/04
Bitcoin dominance continued to fall this week as the price of BTC remained flat, hovering around the $46k mark. While enthusiasts hope to see BTC surge towards $100K this year, bitcoin’s market dominance in 2022 has already fallen under its 2021 low, sitting at 37% according to the Domination Finance tracker.
It’s part of a trend that began early last year as BTC and ETH are now combined to constitute around 58% of the total crypto market capitalization, which is less than bitcoin’s share was in March 2021. 32% still remains the lowest level of BTC dominance following the first major altcoin push in 2018. The plunge in BTC dominance typically indicates a rally in altcoins, but in this case altcoins are also trending down, just at a slower rate.
“Altcoin season continues, the surge in value over the last several years doesn’t seem to be slowing down,” says Michal Cymbalisty, co-founder of Domination Finance “The writing is on the wall — altcoin popularity will grow in 2022 as exciting new multichain projects gain momentum.”
Altcoin market dominance is up 3X in the last 7 years according to a new report from tradingplatforms.com. Researchers say “the growth in market dominance of the Altcoins is indicative of a shift in thinking about crypto assets. Many are embracing them as alternatives to BTC. As the crypto space continues to develop, BTC’s dominance will come under increased pressure.”