Crypto Currency News

Bitcoin dominance drops to 40% and approaches all-time lows

Bitcoin is experiencing its worst day so far this year

The dominance of bitcoin (BTC) in the crypto currency market is declining more and more and already stands at 40%. The main digital asset did not register such a low figure since June 2018 when its capitalization represented between 39% and 41% of the entire market.

So far in 2021, the dominance of bitcoin has fallen by 30%, a significant figure if one takes into account that by January 3 the dominance was almost 70%. The percentages show that the market is in full season for alternative crypto currencies or altcoins.

Operators and investors would be taking their funds to other projects in the hope of obtaining higher returns. Investors assume that altcoins could grow much faster than bitcoin, which is currently trading at about $ 48,000 per unit, according to the INA News price index.

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The current drop in BTC dominance is bringing the crypto currency closer to its all-time lows regarding this metric. According to CoinMarketCap records , in January 2018 the dominance of bitcoin fell to 32.8%. At that time, the main rival of bitcoin was Ethereum (ETH) and its native crypto currency, ether, which followed with 18.7%.

Currently, the panorama is repeated with these two crypto currencies, but with a much larger total market capitalization and that is already between 2.2 and 2.5 trillion dollars. Right now Ethereum exhibits a dominance of 18.4% while in third place is Binance Coin (BNB) with 4%.

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