Bitcoin has been the crypto king and is known as the most dominant cryptocurrency in the crypto industry since its inception in 2011. It has grabbed the attention of investors to become the first choice for bringing overwhelming ROI (return on investment) during the bull run. However, it now seems that the dominance of bitcoin is fading away as it reaches the bottom line in four years due to the recent crypto winter.
Crypto Winter Brings Lowest Market Dominance
Bitcoin is currently the leading flagship digital asset due to its attractive price action and the market’s favorability. However, the current market crash has led several crypto projects to plummet, resulting in lower market dominance than before.
According to CoinMarketCap, Bitcoin’s market dominance is trading near 41.69%, the lowest since March 2018, with a market cap of $388 million. The market cap of Bitcoin also dropped from $1.23 trillion to $388 million since the crypto winter that began in 2021.
Bitcoin is not the only one that has been affected by the bearish market, as Ethereum’s market dominance has significantly dropped by 4% and is currently trading near 18.07% despite its revolutionizing merge event. ETH’s market cap also dropped from $569 billion to $167 billion due to the market crash.
The crypto winter has not spared popular altcoins and meme coins, as Dogecoin’s market cap has touched the lowest ($8.5 billion) since 2021 when it was $88.68 billion. The market dominance has also been affected as it has dropped from 4% to 0.93% within a year.
Similarly, ADA’s market dominance also fell despite its much-anticipated Vasil hard fork upgrade. ADA’s market dominance is 1.59%, dropping over 3% since 2021.
Next Phase For The Crypto Market
The decline in the market dominance of several leading crypto coins, including altcoins, is obvious as the interest hike and inflation report acted as macroeconomic factors to bring negative sentiments in the crypto market.
The low market cap and dominance indicate less interest from investors to invest in the market now, as the volatility can eat up all the funds. However, if we look at the past, Bitcoin’s drop in dominance enables other altcoins to skyrocket as investors look for other investment opportunities to generate fruitful returns. But this time, it is not happening anymore, as other altcoins are also trading near the bottom line in market dominance and capitalization.
However, bitcoin has gained significant positive momentum as it has been trading upward for the last two weeks, and recently it broke a crucial price level of $20K. Bitcoin is trading near $20,122 with an uptrend of 0.62%.
Other crypto projects, including Ethereum and several altcoins, have seen significant growth, and it seems that the crypto market is currently in a recovery phase.