Bitcoin Dominance Hit New Low: Who Are the Biggest Gainers of the Altseason?

The December market correction has resulted in the sharpest decline in the Bitcoin market dominance.

Being the pioneer cryptocurrency, Bitcoin has enjoyed a significant industry share. In the early days, Bitcoin dominated as much as 96% of the market. However, as the industry evolves, newer cryptocurrencies have begun to take a substantial stake in the market.

Although 2021 has been a great year for Bitcoin, its market dominance has consistently dropped over the last 11 months. However, the December market correction has resulted in the sharpest decline in the Bitcoin market dominance.

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While Bitcoin has gained 70% year-to-date, Ethereum has gained more than 500%, Binance Coin (BNB) has gained 1,460%, Solana (SOL) has gained 10,100%, Cardano (ADA) has gained 680%, Ripple (XRP) has gained 310%, and Polkadot (DOT) has gained 240%.

Bitcoin Dominance to Lowest Point Since February 2018

At the start of 2021, Bitcoin contributed more than 70% of the global crypto market cap. However, retail and institutional interest in altcoins increased as the year unfolded. In addition, year-to-date, many altcoins outperform Bitcoin in terms of gains.

The growth of altcoins has led to the shrinkage in Bitcoin’s dominance. As the market corrected, Bitcoin’s dominance fell as low as 37.18%, the lowest since February 2018. Year-to-date, Bitcoin’s dominance is down by 43%. 

The year-to-date Bitcoin dominance index chart. Source: Tradingview

At the time of this writing, Bitcoin’s dominance has recovered above 40.4% as the price of BTC approaches $50k.

  • The closest to Bitcoin’s dominance is Ethereum. However, Bitcoin’s 40.46% is significantly higher than Ethereum’s 20.1%

Why You Should Care

Although Bitcoin remains the largest cryptocurrency, altcoins are slowly taking over market share from Bitcoin.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia