A significant milestone in Bitcoin’s domination on the global cryptocurrency market is rapidly approaching, suggesting a potential shift in market sentiment in Favour of the special digital currency.
The indicator, which contrasts the market capitalization of the leading cryptocurrency with the total value of all cryptocurrencies, has risen above 50% and is currently being watched to reach 70%.
The ten-year history of Bitcoin’s supremacy shows its endurance in the face of a burgeoning market for competing cryptocurrencies, or “altcoins.”
Between 2011 and 2013, when the first wave of altcoins, including Litecoin and the Ripple-affiliated XRP, joined the market, Bitcoin maintained near-total dominance at about 95%.
Despite the 2015 launch of Ethereum and the rush of initial coin offerings (ICOs) in 2017–2018, Bitcoin was able to maintain its market dominance. Despite the rise of ICOs, its dominance fell to an all-time low of 37% in January 2018, although it rose to above 50% by the end of the year.
Decentralized finance (DeFi) and non-fungible tokens (NFTs) have grown significantly over time, mostly because they are built on rival blockchains like Ethereum and Solana. Due to this, Bitcoin’s market share fell to 39% by the middle of 2021.
But in November 2021, Bitcoin dominance regained its foothold and began to rise. As of June 20, it had crossed the 50% threshold for the first time since April 2021.
According to the most recent data from CoinGecko, Bitcoin is outperforming altcoins on a weekly basis, signaling a rise in confidence in the currency. With a $519 billion market cap and a weekly growth rate of 2.8%, Bitcoin stays strong in a market that has been jolted by the volatility of altcoins.
