Bitcoin is the main cryptocurrency since it was launched in 2009. As a result, Bitcoin has dominated the cryptocurrency market. However, the dominance has been falling this year, particularly in the first several months until May.
During most of the last decade, Bitcoin’s market dominance has remained above 50%, which means that the leading cryptocurrency has accounted for more than 50% of the total crypto market cap for most of the crypto history. At some point, Bitcoin’s market cap comprised more than 70% of the total cryptocurrency market cap.
Bitcoin’s peak share continues to decline from cycle to cycle as more new players emerge. The trend is changing as more digital currencies are created, and the crypto space becomes more diversified, with NFTs (non-fungible tokens), DeFi (decentralized finance), GameFi, meme coins etc.
New blockchain networks such as Solana, Fantom, Cardano, Binance, Polkadot, etc have emerged which have excellent use cases in the market, which makes both investors and developers eager to adopt them. Often investors prefer altcoins over Bitcoin. As a result of the rise of these altcoins, Bitcoin’s market dominance level has been dropping.
Bitcoin Market Dominance Chart
Bitcoin’s market dominance will fall below 40% as new crypto coins come out
Right now, the Bitcoin market dominance stands just above 40% as the chart above shows, while the trend is declining, as new altcoins come into life. The dominance will eventually fall below 40%. The market cap has fallen below $1 trillion, standing at $888 billion right now. The Bitcoin price has been on a bearish trend, while certain cryptos such as Avalanche (AVAX) and Terra (LUNA) continue to make gains, which means that their overall market dominance increases while Bitcoin’s dominance declines. It has slipped below 40% three times during 2021 and it seems like the dominance will finally fall below this level. It hasn’t been increasing above 50% since it fell below that level in May, so a similar scenario might unfold now.
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