Bitcoin dominance continues to decline: are altcoins now less dependent on Bitcoin’s movement?
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Answer Bitcoin dominance continues to decline: are altcoins now less dependent on Bitcoin’s movement?
The cryptocurrency market in general has been volatile for weeks with an interesting trend emerging.
The bitcoin price fluctuates between $46,000 to $47,000, with its dominance over altcoins clearly declining.
Bitcoin’s share of the cryptocurrency market has fallen to less than 40%.
While some of the altcoin projects have shown their strength, to name a few:
Coin LUNA, MATIC, LINK, AVAX…
This brings us back to the age-old debate over whether Bitcoin is losing its grip on the crypto market.
Given the graphic curve shown below:
We clearly notice that Bitcoin’s takeover and dominance of the cryptocurrency market has been in a downtrend since the beginning of 2021.
Read:Coinbase faces crypto patent infringement case amid declining trading volumes on its platform
In fact, Bitcoin’s dominance is close to its 2018 low.
On the other hand, altcoins like ethereum and others are expanding their dominance in the market.
In one of his recent tweets, Lark Davis, a famous crypto market analyst, wrote:
There are actually a lot of altcoins out there that are showing good strength even though the Bitcoin movement looks sad.
The more the industry grows, the less impact Bitcoin has on altcoins.
Growth of the altcoin market:
Previously, and exactly in 2017-2018, the movement in the altcoin market was highly dependent on the movement of Bitcoin.
Meaning, Bitcoin had a huge impact on the cryptocurrency market rally which seems to be changing now!
Over the past few years, we’ve seen some solid altcoin projects with deep blockchain technology coming to market.
Besides, the rapid expansion of the DeFi market and non-fungible tokens (NFT) have made some good projects like Solana and “Avalanche” stand out in the spotlight.
On the other hand, there are projects like Chainlink that solve important and crucial problems related to data transmission over blockchain networks.
Read:BitMEX CEO Highlights Three Key Reasons That Will Lead Bitcoin To Further Adoption
There is also Project Terra, which addresses the liquidity requirements of DeFi.
In general, the space of altcoins is expanding through their major solutions and this is the reason why interest in cryptocurrencies has increased over time.
While many see Bitcoin as a store of value, alternative cryptocurrency projects are helping to take advantage of new technology solutions.
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