Bitcoin Dominance Continues to Rise, Altcoins and Stablecoins Decline
CryptoNewsTerminal Staff20 Aug, 2024
Bitcoin Dominance Continues to Rise, Altcoins and Stablecoins Decline
Major crypto media outlet WuBlockchain cited Glassnode data showing that Bitcoin dominance has increased by 17.5%p since the last cycle low (November 2022), from 38.7% to 56.2%. This indicates that investors are favoring Bitcoin over other cryptocurrencies during the current market downturn. Over the same period, Ethereum dominance has decreased from 16.8% to 15.2%, stablecoin dominance has decreased from 17.3% to 7.4%, and altcoin dominance (excluding Ethereum) has decreased from 27.2% to 21.3%. Dominance refers to the proportion of a particular coin's market capitalization relative to the total cryptocurrency market capitalization. This trend suggests that investors are seeking refuge in Bitcoin, which is often seen as a more stable and established asset in the crypto market. The decline in altcoin and stablecoin dominance could indicate that investors are reducing their exposure to riskier assets during the bear market. It is important to note that dominance trends can change over time. In previous market cycles, Bitcoin dominance has typically increased during bear markets and decreased during bull markets. Whether this trend will continue in the future remains to be seen.
