The global crypto market cap is swinging near the $2 trillion mark. In fact, the Altseason is one of the main reasons for the crypto market cap building this record. And with that altcoins are continuing to be on the top of their game. The dominance of altcoins during this altseason has put Bitcoin’s market dominance in question. Bitcoin’s crypto market dominance has fallen below 56% as the downward momentum continues.
Bitcoin’s market dominance now stands at 55.3% at the time of writing. This is the lowest recorded since April 2019. The world’s largest cryptocurrency is facing this sharp decline in market dominance due to the rise in the popularity of altcoins. Even though the price of Bitcoin is still on an upward trajectory, its dominance has plummeted. Even though Bitcoin remains the best asset to hodl, people have started to recognize the potential of altcoins in this altseason with altcoins transactions hitting a record high. Mainstream altcoins including XRP, Binance Coin, Cardano, and Ethereum have jumped significantly in the last few days.
Bitcoin No Longer the Only Crypto Under the Spotlight
Bitcoin’s market dominance reached almost 70% in January 2021. Since then, it has dwindled to 55%. In the last few months, digital currencies such as Ethereum, XRP, Binance Coin, Polkadot, Uniswap, and Chainlink have seen significant gains. The recent market dominance dip of Bitcoin attributes to the DeFi boom and growing interest in non-fungible tokens (NFTs).
If we talk about Ethereum, it is still one of the most mainstream and favored altcoins today. On February 20 it crossed the $2000 mark briefly to hit $2,036. After that during the crypto market correction, the price of the token pulled back. But just the previous week, it crossed $2000 again. Currently, its price stands at $2120 at the time of writing.
Polkadot, the token which is just one year old, and was born in the middle of the pandemic, has received a significant response from the crypto community. It is one of the most popular and spoken about cryptocurrencies today. There was also a recent surge in the price of the DOT token. Polkadot, according to Kraken CEO Jesse Powell, could overtake Ethereum due to its lower transaction fees. Powell may have a point, given that Ethereum’s average transaction fee increased from $13 to $22 in a single day due to increased demand. The price of the token is $44.13 at the time of writing.
BitTorrent (BTT), Tron (TRX), and Tezos (XTZ) all saw double-digit percentage gains in the last 24 hours as investors and traders sought attractive returns from small-cap tokens, despite the higher risks. Bitcoin’s price has doubled this year, with $1.1 trillion in market capitalization, but the rally has slowed in recent weeks allowing altcoins to take the lead.
Altcoins to Push the Global Crypto Market Cap Beyond $2 trillion
If statistics have to be believed, then altcoins should be given the most credit for the global crypto market cap having a cakewalk towards $2 trillion. Both retail and institutional investors are preparing to load up on altcoins. The wallet holders of ETH have only increased since it recently hit its ATH. Institutional giant Grayscale Investments has opened up new trusts that include the top altcoin tokens like Chainlink, Filecoin, and BAT.
FD7 Ventures, a Dubai-based global cryptocurrency investment fund, with more than $1 billion in Bitcoin under management, recently announced that it would sell 75% of its Bitcoin assets. This follows the company’s announcement that it wants to sell $750 million in Bitcoin assets to invest in Polkadot and Cardano.
Having said that, even though few analysts say that the Bitcoin dominance will eventually come back, the milestones and records hit by altcoins prove that the altseason is here, and it is here to stay.