Bitcoin is back in the spotlight. Currently priced at $26,684, the flagship cryptocurrency now accounts for over 50% of the total crypto market, with a market cap of approximately $520 billion. The milestone is particularly significant as it comes at a time when many alternative cryptocurrencies, commonly referred to as altcoins, are experiencing stagnation or decline. Despite regaining dominance, Bitcoin's position is still down 4.5% from its June high and 22.5% from its peak in January 2022.
Altcoins struggle to keep up
Altcoins like Ethereum, BNB and XRP are lagging behind in performance compared to Bitcoin. Ethereum, the closest competitor, is currently priced at $1,632.09, down 0.1% in the past hour and only up 1.1% over the last week. Similar trends are apparent on other altcoins; BNB is up just 2.4% over the week, while XRP has declined by 0.4%.
Some lesser-known coins like Toncoin have shown dramatic price swings, but they occupy a much smaller slice of the market. The underwhelming performance of these alternative cryptocurrencies has contributed to Bitcoin's recent increase in market dominance.
Bitcoin's regained market dominance aligns with historical trends, including its tendency to spike during bear markets. Bitcoin remains the pioneer and the most well-known crypto asset, and its market share has fluctuated over time, especially during periods of altcoin surges.
The cryptocurrency has often gained ground in bearish climates, serving as a sort of digital "safe haven" for investors. Despite the current upward trend, it is crucial to note that Bitcoin's dominance is still far from its peak levels as it is down from both its June high of 52% and the bull market zenith it reached in December 2020 of 73%.
However, there might still be room for growth. Analyst Benjamin Cowen tweeted, "You know what would look better than 50% #BTC dominance? 60% BTC dominance."