The dominance of the BTC market will decline as Ethereum One grows
The dominance of the BTC market decreased over the weekend, but the dominance of the Ethereum market increased. During the weekend’s crypto crash, Bitcoin’s market dominance fell to an unprecedented low. The entire market was hit at one point on Saturday, with the market dominance of the first and largest cryptocurrency at 38.32%. The only time it hit this low was in May when it hit 37.76%, according to CoinGecko. That’s not far from the all-time low dominance in 2018 when it hit 33%, but in 2018 Bitcoin was around 40%.
“Flippening,” also known as the moment Ethereum rates Bitcoin in terms of market value, is most likely to occur during this bull market.
Here is BTC% dominance divided by ETH% dominance.
I let you be the judge … pic.twitter.com/V2Ejq1kl75
– Nicholas Merten (@Nicholas_Merten) December 5, 2021
Market dominance refers to a cryptocurrency’s share of total market capitalization, and its total market capitalization is currently $ 2.4 trillion, with Bitcoin’s market capitalization set at $ 924 billion. It was over $ 1 trillion at this time last month. As of Saturday, BTC dominance had increased and at the time of writing, Tradingview has set Bitcoin dominance to 41%. The sell-off started on Friday and accelerated on Saturday, hitting the entire coin market but then hitting BTC heavily. Concerns about Omicron’s COVID-19 strain prompted the Fed to speak out about the risk of high inflation and rocking traditional stock markets and non-exempt cryptocurrencies.
Bitcoin’s price and market dominance declined as investors bought and sold the asset. On Sunday afternoon, BTC price rebounded to $ 48,930, down 1% over the past 24 hours and 10% over the past week. Ethereum, the second largest cryptocurrency by market capitalization, has suffered in price over the past few days. Market dominance has indeed increased as people sell their BTC and the latest numbers from CoinGecko show Ethereum dominance of 20% on Saturday, its highest level since 2018.
This is possibly the worst BTC price action against alts I’ve seen in the past decade.
– Qiao Wang recruited (@QwQiao) December 4, 2021
In perspective it is only 11%. Some commentators in the crypto space say a decline could be imminent as ETH’s market cap is larger than Bitcoin’s. Ethereum still has a long way to go, at the time of writing its market cap is 46% below BTC’s at $ 491 billion.