TL; DR Breakdown
- Bitcoin dominance crashed to 37% over the weekend
- Ethereum continues to gain ground on Bitcoin
- The crypto market look set for recovery
Over the last few years, Bitcoin has become the most powerful digital asset in the market. Although Ethereum is still trying to upstage it, the digital asset has remained entirely in control. However, Bitcoin saw a small scare over the weekend as the price of the leading digital asset crashed heavily. Bitcoin was not the only asset that crashed as other top assets also followed its direction. Reports claim that Bitcoin dominance has reduced drastically, with Bitcoin crashing heavily.
Bitcoin dominance crash was caused by market decline
During the crypto market decline, Bitcoin dominance declined heavily to stay around 38.2%. Before now, Bitcoin dominance had always been above this figure, with May the last time it touched a figure close to this at 37.7%. However, 2018 saw Bitcoin dominance crash to around 33%, even though Bitcoin spent most of the year around 40%.
Putting it into figures, market dominance can be regarded as the strength of a token’s crypto cap over the others. Presently, the crypto market boasts a market cap of about $2.4 trillion, with Bitcoin adding $924 billion of its value to it. This figure resulted from the recent crash that the market suffered as Bitcoin’s market cap already climbed above the $1 trillion mark.
The crypto market looks set for recovery
According to recent reports, Bitcoin dominance has continued to trickle above as recent data puts the figure at around 41%. Although the market suffered a blackout that wiped massive profits from traders’ portfolios, Bitcoin suffered the most. One of the few factors that pushed the digital asset further down was the new Omicron variant of the coronavirus disease.
Asides from that, the Fed was mulling during the weekend about digital assets not satisfying as a hedge against inflation. Although Bitcoin is still losing a little bit above 1% of its value, the digital asset is presently trading at $48,860. Ethereum was not exempted in the market crash as the second digital asset also lost a considerable amount of its value. But despite that, the digital asset has continued to creep up in market dominance.
One reason is that people decided against selling their stake in the digital asset while cashing out on their Bitcoin holdings heavily. Recent data from CoinGecko shows that Ethereum dominance is presently placed at 20%, one of the highest it has seen since 2018. At the beginning of this year, the dominance figure was merely going anywhere as it got stuck on 11%. With this, most analysts would already suggest that Ethereum was on its way to upstage Bitcoin in terms of market cap.