Analyst: “It May Signal That Altcoins Will Perform Better”
According to analysts, Bitcoin (BTC) has stopped gaining more market share than other cryptocurrencies, which could mean altcoins will soon outperform. TradingView data shows that Bitcoin’s dominance, i.e. how much share of the market, increased from 42% in the first quarter to 48%, but not above that this month.
The dominance rate has been hovering between 38% and 48% for almost two years, and altcoins often see big gains when they drop between 46% and 48%. “Bitcoin’s dominance may have peaked, signaling that altcoins will outperform,” Markus Thielen, research and strategy lead at crypto services provider Matrixport, said in a note to clients on Thursday. Historical data shows that after Bitcoin’s dominance rate dropped below 48% in July 2021, the total value of altcoins increased by more than 60% to $1.39 trillion in two months.
Similar declines in dominance in mid-October 2021 and June 2022 also caused altcoin values to rise. Thielen thinks it could happen again. Continuing his statement, Thielen said:
Bitcoin dominance appears to be around 45-46% of the total crypto market cap, at the same levels as in 2022. The fact that Bitcoin continues to outperform the rest of the ecosystem means that only Bitcoin matters, which seems highly unlikely given the amount of money and talent swirling on other chains.
Leave a ReplyWant to join the discussion?
Feel free to contribute!