Bitcoin dominance falls under 40%

While Bitcoin critics claim this means that BTC is losing its first-mover competitive advantage, others are anticipating the “altcoin season” is just around the corner, or might even be already underway.

20731 Total views

119 Total shares

Bitcoin dominance falls under 40%

Bitcoin’s market dominance has continued to fall, bottoming out below 40% this week. That’s very close to the all-time low of 36.7% in January 2018, according to data from TradingView.

Bitcoin (BTC) market dominance refers to the ratio between BTC’s market capitalization and the total crypto market cap.

It’s not the first time its dominance has dipped in 2021. Back in May, Cointelegraph reported that BTC had dipped to represent just 40.3% of the combined crypto asset capitalization, according to CoinMarketCap, and it neared the same level again in September. 

Bitcoin critic and Europac chairman Peter Schiff tweeted about the event on Wednesday, saying that it’s indicative that BTC is “losing its first-mover competitive advantage.”

With over 16,000 alternative cryptos to choose from Bitcoin’s market dominance is now below 40% for the first time since June of 2018. With an unlimited supply of easily created cryptos with virtually identical properties, #Bitcoin is losing its first-mover competitive advantage.

— Peter Schiff (@PeterSchiff) December 28, 2021

Research published by TradingPlatforms on Monday stated that the data may signal an incoming “alt season.” Over the last seven years, altcoin market dominance has increased threefold from 21% in 2014 to around the 60% mark this month.

Ether’s (ETH) market dominance continues to sit above 20% at almost​​ $500 billion. Over the past year, ETH’s market dominance has doubled from 10%.

In a Friday tweet, Crypto analyst Altcoin Sherpa claimed that the “alt season” has already been underway for an entire year. They referenced a chart tracking BTC’s market dominance, suggesting that the downward trend may continue.

#Altcoins: Mini thread here on ‘wen #Altseason‘. Alt season has been going on for an entire year, you just haven’t noticed it. Here’s the #Bitcoin dominance chart- you can see alts have flourished since January 2021. $BTC $ETH pic.twitter.com/c2w1PjHrqV

— Altcoin Sherpa (@AltcoinSherpa) December 23, 2021

It remains to be seen whether institutional investments will help put a floor under the dominance metric. In a Tuesday interview with CNBC, Genesis Trading head of market insights Noelle Acheson said that she could see “strong signs” of institutional crypto investment growth accelerating during 2022.

She said that the amount of institutional investment growth in the crypto space over the last 12 months “has been astonishing.”

Related: Bitcoin dominance on the rise once again as crypto market rallies

Back in October, analysts from international banking giant JPMorgan stated that the BTC rally at the time was being fueled by an increased appetite from institutional investors. They claimed that “institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold.”

According to on-chain data from Glassnode, although BTC’s short-term supply has decreased by 32%, long-term holders added 16% to their treasuries during 2021.

Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here

Related Posts
Happy Birthday, Bitcoin! Industry players share a few words thumbnail

Happy Birthday, Bitcoin! Industry players share a few words

Bitcoin’s genesis block was mined 13 years ago today! 4353 Total views 91 Total shares To celebrate the Bitcoin network's 13th anniversary, Cointelegraph gathered birthday messages from industry players to mark the occasion. Following a hash rate all-time high, Bitcoin (BTC) has officially reached its adolescent years, and industry experts weigh in on its future.Beimnet…
Read More
Alliance Mining samples up to 44 g/t gold at Red Rice Lake, Manitoba thumbnail

Alliance Mining samples up to 44 g/t gold at Red Rice Lake, Manitoba

Alliance Mining Corp. [ALM-TSXV] reported results from the fall 2021 prospecting and sampling program on its 100%-owned Red Rice Lake gold property in the Bissett-Rice Lake belt of southeastern Manitoba. “We are very pleased with these initial results from the expanded Red Rice claim group,” stated Alliance President Chris Anderson, “and we will have further…
Read More
China is preparing the ground for "vaccine diplomacy" thumbnail

China is preparing the ground for “vaccine diplomacy”

2020-09-13 07:16publikacja2020-09-13 07:16fot. Liu Bin / / ForumWładze ChRL obiecują niektórym krajom priorytetowy dostęp do opracowanych przez chińskie firmy szczepionek przeciw Covid-19 albo oferują im pożyczki na zakup pożądanych dawek. Część komentatorów ocenia to jako początek „dyplomacji szczepionkowej” Pekinu. Żadna szczepionka przeciw koronawirusowi nie została jeszcze zatwierdzona do użycia przez Światową Organizację Zdrowia (WHO), ale poszczególne…
Read More
What is Oracle’s generative AI strategy? thumbnail

What is Oracle’s generative AI strategy?

Oracle’s three-tier strategy to take on rival cloud service providers — AWS, IBM, Google Cloud, and Microsoft — includes its OCI Supercluster, partnership with Cohere, and addition of generative AI assistants to its SaaS offerings. While Microsoft, AWS, Google Cloud, and IBM have already released their generative AI offerings, rival Oracle has so far been
Read More
Index Of News
Consider making some contribution to keep us going. We are donation based team who works to bring the best content to the readers. Every donation matters.
Donate Now

Subscription Form

Liking our Index Of News so far? Would you like to subscribe to receive news updates daily?

Total
0
Share