In recent weeks, Bitcoin’s dominance (measured by the comparison between the overall market value of Bitcoin and the valuation of all other crypto assets) has dropped a lot. At the end of February, Bitcoin’s dominance began to decline from 61% to 50% today. At the same time, the market value of Ethereum increased from 11.8% to 14.5% today from the same point in time.
Bitcoin’s dominance drops to 50%
Since the birth of alternative crypto assets, people have been using a metric called Bitcoin (BTC) advantage, which records the comparison of the total capital of BTC with all the market value held by other currencies.
Interestingly, from the envisaged day to February 2017, BTC’s dominance was slightly below the 80% range.
In the first week of January 2018, BTC’s dominance fell to a record low of 33%. This year, the dominant level of Bitcoin is mostly above 60%, and by January 2021, it is close to 70%.
However, since February 28, BTC’s dominance has dropped from 61% on April 23 to a low of 50%. From February 28 to now, at the same time, Ethereum (ETH) has climbed from 11.8% to 14.5%.
Countless competitors push Bitcoin’s dominance down
The market value of Ethereum is not the only token that eats away BTC’s dominance. Binance Coin has ranked third in terms of cryptocurrency market valuation and occupies 4.33% of the entire $1.87 trillion market value of the cryptocurrency economy.
Today, the stablecoin tether (USDT) holds 2.8%, XRP has 2.25%, and Cardano (ADA) has 1.9%. Solana (SOL) ranks 15th with the highest ranking, all the way to Dogecoin’s 7th, accounting for 0.5% or more of the entire crypto economy.
From October 2020 to today, the total market value of cryptocurrencies excluding Bitcoin has increased significantly from US$145 billion to nearly US$1 trillion. The climax of the BTC bull market was accompanied by the emergence of a large number of coins, but in general, some coins are eating more than most.
Tokens such as Ethereum, Binance Coin, Cardano, XRP and Tether (USDT) have also caused the most damage to the dominance of BTC.
What do you think of BTC’s dominance level falling to a record low in 2021? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, bitcoinwisdom.io
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear any direct or indirect responsibility for the use or reliance on any content, goods or services mentioned in this article or any loss or loss related to it.