Bitcoin's (BTC) dominance in the crypto market has fallen to a psychological threshold of 40%. This reflects the decline in the impact of the first cryptocurrency on other tokens.
The dominance of cryptocurrencies in the market depends on the ratio between its market capitalization ($905.27 billion in Bitcoin) and the total market capitalization of the entire cryptocurrency ($2.24 trillion). Since the beginning of the year, this indicator of Bitcoin has been gradually declining.
According to TradingView, Bitcoin's dominance has fallen from 69% to 40% in the past year and is close to an all-time low of 37%. As of December 29, the top 10 most influential assets include:
Bitcoin - 40.12%;
Ethereum - 19.96%;
Binance Coin - 3.9%;
Tether - 3.45%;
Solana - 2.4%;
hexadecimal - 2.4%;
Cardano - 2.11%;
USD coins - 1.86%;
XRP - 1.77%；
Poca - 1.25%.
Bitcoin's share of the total capital of cryptocurrencies cannot be stopped, even though the cost of the first cryptocurrency has increased by 64% since the beginning of the year (compared to 16% last month). According to the WhiteBIT cryptocurrency exchange, as of December 29, a BTC was trading at $47,900.
Against this backdrop, tradingplatforms published the results of a study according to which the dominance of altcoins in the market has tripled in the past seven years – from 21% to nearly 60%. This could herald the upcoming "altcoin season."
Meanwhile, codebreaker Altcoin Sherpa said the "altcoin season" on Twitter had been going on for an entire year. As a confirmation, he cites a chart of Bitcoin's dominant downtrend.
At the same time, he drew attention to the seasonality of the dominant level of BTC. According to experts, every winter (except 2021), the first cryptocurrency systematically loses its influence and gains influence in the summer.
However, he explained that the decline in the indicator is generally due to the fact that cryptocurrencies are in the DeFi and NFT space (including auctions and games), meta sections, and L1 operations (i.e. the first level). These are tokens such as Solana, Axie Infinity, The Sandbox, and Terra.
We would like to remind that 90% of all bitcoins earlier were mined in December 2021. That is, 18.89 million of the 21 million of the maximum circulation.