Bitcoin market dominance has continued to decline, bottoming below 40% this week. That’s very close to the all-time low of 36.7% from January 2018, according to data from TradingView.
The market dominance of Bitcoin (BTC) refers to the relationship between the market capitalization of BTC and the total capitalization of the cryptocurrency market.
It is not the first time that its domain has fallen in 2021. As early as May, Cointelegraph reported that BTC had fallen to represent just 40.3% of the combined cryptoasset capitalization, according to CoinMarketCap, and again approached the same level in September.
The Bitcoin critic and president of Europac Peter schiff tweeted about the event on Wednesday, saying that it is indicative that BTC is “losing its competitive edge from the first move”.
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
With over 16,000 alternative cryptocurrencies to choose from, Bitcoin’s market dominance is now below 40% for the first time since June 2018. With an unlimited supply of easily created cryptocurrencies with virtually identical properties, Bitcoin is losing its competitive edge. of first movement.
Research published by TradingPlatforms on Monday claimed that the data may signal that an “altcoin season” is about to take place.. In the past seven years, the dominance of the altcoin market has tripled, from 21% in 2014 to around 60% this month.
Ether (ETH) market dominance remains above 20%, at nearly $ 500 billion. In the last year, ETH market dominance has doubled from 10%.
In a tweet on Friday, the cryptocurrency analyst Altcoin Sherpa claimed that “altcoin season” has already been underway for a year. He referenced a chart that tracks the dominance of the BTC market, suggesting that the downtrend 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
Altcoins: Mini thread here about ‘wen #Altseason’. Altcoin season has been going on for a whole year, you just haven’t noticed. Here’s the Bitcoin dominance chart – you can see that altcoins have flourished since January 2021. $ BTC $ ETH
It remains to be seen if institutional investments will help put a floor under the dominance metric. In an interview Tuesday with CNBC, Genesis Trading’s head of market outlook, Noelle Acheson said she thinks “strong signs” of growth in institutional cryptocurrency investment will accelerate during 2022.
She said that The amount of growth of institutional investment in the cryptocurrency space in the last 12 months “has been surprising”.
As early as October, analysts at the international banking giant JPMorgan claimed that the BTC rally at the time was being fueled by increased appetite from institutional investors. They stated that “institutional investors seem to be turning to Bitcoin, perhaps seeing it as a better hedge against inflation than gold.”
According to on-chain data from Glassnode, Although short-term BTC supply has decreased by 32%, long-term holders added 16% to their treasuries during 2021.
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