Bitcoin is the most popular cryptocurrency, and we know that. However, its dominance in the cryptocurrency market is not something set in stone, and we show you some clues about it. For this we will take as a reference some data offered by CoinMarketCap. What we want to answer is, how much dominance does Bitcoin have in the cryptocurrency market this year?
To put things in perspective, we must point out that the all-time low of Bitcoin’s dominance in the cryptocurrency market happened around 2018, during the month of January. Back then, Bitcoin had just over 30% dominance of the overall cryptocurrency market.
Since then many things have changed, and Bitcoin has gained ground as well, with some ups and downs, but not enough to reach those levels. However, now you also have to consider the annual change to date to really see the status of the dominance of the cryptocurrency created by Satoshi Nakamoto.
Bitcoin dominance percentage in total cryptocurrency market capitalization
When we look at the graph of the percentage that each cryptocurrency represents in the total cryptocurrency market capitalization, we will see that the dominance of Bitcoin has been gradually decreasing. This during the year 2021.
Graph of the dominance of each cryptocurrency in the total market capitalization, where the marked dominance of Bitcoin is evidenced. Source: CoinMarketCap
By January 2, 2021, Bitcoin accounted for 71.86% of the total market capitalization. Next on the list has been Ethereum, which at that time had the dominance of 10.63% of the total. The domain difference was quite wide as you can see.
Today, four months later, Bitcoin dominates just 47.63% of the cryptocurrency market capitalization. For its part, Ethereum represents 15.43%. Likewise, Binance Coin went from representing 0.66% to 4.31% in the same period of time.
Conclusions derived from the data
From all this we can draw several conclusions. The first is that although in these months Bitcoin has managed to surpass its all-time highs, to levels never seen before, and with investments from recognized institutions, the leading cryptocurrency has gradually lost ground.
The second is that as the world of cryptocurrencies diversifies, it is increasingly difficult for Bitcoin to be the unique and exclusive alternative. This is not to say that the gap has narrowed to level. No, the domain is still present, but at a lower level than before.
The altcoin market has found loyal investors, willing to take other risks that may allow them to obtain higher percentage profit margins in less time. An example of this is what happened to Dogecoin after the effect of Elon Musk’s promotion of the cryptocurrency. More than investment, we could be talking about a simple speculation game, which in the long run, if you do not know how to handle it well, can lead to large losses.
The total market capitalization of Cryptocurrencies is currently approximately US $ 2.26 trillion. It has certainly increased gradually, as the graph shows.
Total cryptocurrency market capitalization during the year 2021. Source: CoinMarketCap
However, if this number has grown, but the dominance of Bitcoin has not, it is synonymous with that altcoins like Ethereum have made a significant contribution to the general interest of people in the cryptocurrency sector.