Good morning, everybody! A morning where Bitcoin dominance has dipped below the 40% mark, the lowest point of the index since 2018. Things just got more interesting in the crypto space, so to speak.
The long and short of it is that the crypto economy has dropped significantly in value during the last few days, with the space tapping a low of $2.06 trillion on Monday. This, after a weekend of high drama, most notably from a certain Elon Musk.
Bitcoin market valuation captures 40% of the entire crypto market capitalization.
As in, the value of all 9,869 digital currencies in existence.
This measurement is much lower than what it has been for a while. The first week of January saw BTC dominance at 69.7%. And even after the crypto asset tapped all-time high prices weeks later, this particular figure it has been dropping steadily since then.
The reason for this loss in BTC dominance stems from a number of digital currencies competing for the market position of the original crypto asset. As a matter of fact, most of the top ten digital currencies in terms of market cap have gathered a great deal of value against Bitcoin.
Ether, for example, has been eating BTC dominance in recent weeks. Overall ETH valuation currently stands at 19.5%. And as Ethereum continues to gain on Bitcoin and the US dollar, there are voices suggesting that the market cap of the second biggest cryptocurrency could flip Bitcoin valuation soon.
In due time, that is.
Besides, ETH, three other tokens have captured 3-4% of the crypto economy. These include BND, ADA, and DOGE. Bitcoin Cash and Tether, meanwhile, command 1-2% of the crypto economy capitalization.
Going back in time, things were radically different. Up until February 2017, Bitcoin held an above average dominance level between 84% to 95%. Long gone are those days, that is for sure, and Ether is already halfway there.
Hardcore BTC supporter remain convinced that the coin will never lose the top position, while others believe that a flippening is inevitable.
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