Bitcoin’s (BTC) market dominance is tethering on the verge of falling below 50% even as Dogecoin (DOGE) and other altcoins grow in stature.
What Happened: BTC had a dominance of 50.15% near press time. The number one cryptocurrency by market capitalization traded 1.27% higher at $50,686.32 at press time on Sunday night.
Percentage of Total Market Capitalization In Terms Of Dominance. Source CoinMarketCap.com
Ethereum (ETH) — the next largest cryptocurrency by market cap — had a market dominance of 14.65% around press time, while DOGE enjoyed dominance of 1.76%. Other cryptocurrencies had a market dominance of 18.73%.
ETH traded 8.45% higher at $2,414.13 at press time, while DOGE traded 1.63% lower at $0.26.
At the beginning of April, BTC, ETH, and DOGE had a market dominance of 56.45%, 10.91%, and 0.35% respectively. Other cryptocurrencies had a dominance of 21.45%.
Why It Matters: Bitcoin’s market dominance has not fallen below the 50% mark in three years and this could usher in the so-called altcoin season.
Analyst Michaël van de Poppe predicted a “very bullish” summer for alt-coins previously, a sentiment echoed by some others on social media.
BTC dominance 51.6%
The magic starts when 50% breaks
— ฿ullƉoge (@CryptoBull) April 16, 2021
Meanwhile, prices of several cryptocurrencies associated with Decentralized Finance or DeFi and smart contracts have outpaced BTC — seen by some investors as digital gold — in terms of year-to-date returns.
BTC has soared 74.5% since, while ETH has risen 225.33%. Cardano (ADA) has shot up 527.70% in the same time frame.
Solana, (SOL), Uniswap (UNI), AAVE (AAVE), and Polkadot (DOT) have shot up 3,011.92%, 752.86%, 354.46, and 318.4% respectively.
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