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Falling BTC Dominance means Another Wave Up For Altcoins is in the offing

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  • Bitcoin dominance is declining, and currently, it is sitting at 48.97% dominance
  • The demand for altcoins are bound to increase
  • Investors are putting in their money into altcoins projects

Bitcoin domination always had a reverse effect on the price movement for altcoins. Historically the value of Bitcoin determines the direction of the values of altcoins. Thus, Bitcoin has maintained its hegemony on the market. However, with time, this hegemony of Bitcoin will fall as the demand for altcoins grows. 

Bitcoin dominance shows the ratio of Bitcoin demand as compared to altcoins. Bitcoin dominance is inversely related to altcoins. Hence, if the need for Bitcoin surges, the demand for altcoins falls, therefore for altcoins to grow, the Bitcoin demand must go down. 

Over the years, investments in altcoins have increased, and the domination of Bitcoin has decreased. One of the main reasons investors invest in altcoins is that they feel they had missed the opportunity to invest in Bitcoin, and they do not want to lose the chance with altcoins. Hence investors are putting their money into altcoins projects. 

How present BTC Dominance Affects Altcoins

Bitcoin dominance has been falling for some months, and currently, it is sitting at 48.97% dominance. As a result, Bitcoin now has less than 50% of the total market dominance. The trend reveals that the demand for altcoins is on the rise, and BTC dominance will continue to fall in the coming days.

As the Bitcoin dominance tanks, the value for altcoins will continue to surge. However, market trends reveal that BTC dominance will drop following the latest recovery.

BTC hegemony poised for a decline

BTC dominance currently sits at less than 50%. In such a situation, the demand for altcoins is bound to increase. It will lead to another bout of an upward wave for altcoins. The digital coin –Ethereum, is expected to gain even more dominance as its prominence in the investment sector increases. ETH 2.0 is moving the ecosystem towards proof of stake, and mining will be less energy-intensive. The reduced environmental impact will surely add to the fame of the number two crypto platform.

What this entails for Bitcoin

The surging Altcoins does not mean that Bitcoin values are going to tank. There are over 5,000 different types of digital tokens in the market, and all are rubbing their shoulders to find their space in an increasingly competitive sector. Some of these projects are really out of the world and feature innovative ideas and technology. As time passes by and the industry matures, these projects will become popular. They will gain more market share as more investors enter the market.

Declining Bitcoin dominance also means that BTC is not the only digital asset that is vying for space and gets the attention of the investors. Bitcoin still retains its number one position and the leader in the cryptocurrency arena. It was the first cryptocurrency and will always have the head start advantage. However, as alts rally and create what is known as the ‘alts season,’ BTC will continue to see a decline in its dominance. It will translate into altcoins getting more popular.

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