Bitcoin (BTC) dominance fell briefly to below 50% last week, for the first time since January 2018, and signaled a sharp increase in speculative cryptocurrencies.
The Bitcoin Dominance Index, which measures the market value of BTC compared to the broader cryptocurrency market, fell 49.35% on Thursday, according to CoinMarketCap. At the beginning of 2021, BTC’s dominance was 70.68%.
Meanwhile, Ethereum (ETH) accounted for almost 15% of the total market at the top on Thursday. Since early 2021, ETH’s dominance has increased by almost 4 percentage points.
ETH has surpassed Bitcoin in the last seven days, and has delivered an impressive return of 9.5%. The second largest cryptocurrency by market value fell 10% from the previous record high, while Bitcoin has corrected more than 20%.
The market share of Binance Coin (BNB) is also growing steadily this year, from 0.71% on 1 January to 4.17% on 25 April. BNB depends on many fundamental factors, including the increasing adoption of the Binance platform and the coordinated $ 600 million token burn in the first quarter.
Meanwhile, the total market share for non-top 10 cryptocurrencies has increased from less than 11% to over 18% since 1 January.
Despite hitting several full-time highs this year, Bitcoin’s dominance among digital currencies has dropped dramatically. Source: CoinMarketCap
Commenting on market developments, Meltem Demirors, CoinShares Chief Strategy Officer, Cryptocurrency Investment Manager, said she “sees many people looking for returns by promoting a range of risks.”
Demirors also noted that the market value of 94 cryptocurrencies is now $ 1 billion or more. According to CoinMarketCap, the number has dropped to 87 at the time of writing. Seven additional projects have been valued at $ 900 million or more.
Analysts are divided over the frequency and timing of the so-called alternative season, the period of the market cycle when many digital currencies rally against the dollar and bitcoin. Ben Lili, co-founder and analyst at Jarvis Labs, told Cointelegraph last week that he does not think it is the best time to reallocate BTC to altcoins when it comes to risk.
Meanwhile, analysis by Filbfilb, co-founder of the trading group Decentrader, showed that we are now heading for a major cryptocurrency boom.
The current market value of altcoins is 937 billion dollars.