The cryptocurrency market has had a turbulent weekend and Bitcoin’s market dominance is falling to its lowest level in three years
As the first cryptocurrency created, Bitcoin has always been the market leader. As a rule, Bitcoin accounted for around 50% of the industry’s total market capitalization. However, the recent fall in prices has led to the loss of part of it to Altcoins.
At the time of this report, Bitcoin’s market dominance was 40%, the lowest level since 2018. Since the summer of 2019, it has been above 50%, reaching a year-high of 69.7% in January.
The latest development is accompanied by a decline in the Bitcoin price to around 42,000 US dollars. Due to the massive sell-off, the Bitcoin price has not been able to maintain itself in the area around 60,000 US dollars in recent weeks and is currently trading at around 45,000 US dollars. Market capitalization has also fallen below $ 1 trillion.
The market capitalization for cryptocurrencies amounts to over 2 trillion US dollars, as some altcoins continue to develop excellently despite bitcoins struggles. The second largest cryptocurrency Ether has a market capitalization of around 400 billion US dollars. ETH’s market dominance is now around 19.3%. Binance Coin (BNB) is on his heels with 4% of the total cryptocurrency market capitalisation, with Cardano (ADA) and Dogecoin (DOGE) in fourth and fifth place with 3.3% and 2.9% respectively.
Despite recent losses, several analysts believe we are not yet in a bear market. Some of them claim that the market is close to bottoming out and that cryptocurrencies will rise again in the coming days or weeks.
I think we’re getting quite close to a bottom.
— Michaël van de Poppe (@CryptoMichNL) May 16, 2021