Bitcoin’s dominance increases while old coins have difficulty keeping up
Bitcoin’s dominance on the cryptocurrency market has recently increased, with the market share reaching its highest level for over a year. While old coins have difficulty keeping up, investors return to the original cryptocurrency to look for stability and security.
The dominance of Bitcoin, which measures its share in the entire cryptocurrency market capitalization, has increased steadily since the beginning of the year. At the time of writing, Bitcoin’s dominance is around 70%, a level that has not been seen since September 2019.
The resurrection of Bitcoin’s dominance can be attributed to a number of factors. One of the main reasons is the recent increase in institutional interest in Bitcoin. Companies such as Microstrategy, Square and PayPal have made all significant investments in Bitcoin, which signals other institutional investors that cryptocurrency is a legitimate wealth class.
In addition, the ongoing economic uncertainty caused by the Covid 19 pandemic played a role in the resumption of Bitcoin. Since governments all over the world continue to print money and devalue Fiat currencies, investors turn as a safe asset that is immune to inflation.
On the other hand, old coins have problems keeping the dominance with bitcoins. Many of the top alcohols such as Ethereum, Ripple and Litecoin saw how their market share was swearing when investors look back to Bitcoin. This does not mean that old coins are not valuable investments, but that bitcoins dominance is currently overshadowing them.
Some experts believe that Bitcoin’s dominance will continue to increase in the coming months, since more institutional investors pour money into cryptocurrency. Others believe that old coins will catch up at Bitcoin at some point when the market is celebrating and investors become more comfortable with alternative cryptocurrencies.
In summary, Bitcoin’s market dominance has increased in recent months when old coins have difficulty keeping up. The stability and security of the cryptocurrency have made it an attractive investment for retail and institutional investors, which led to a resuscitation of its dominance. While Altcoins may still have a place on the cryptocurrency market, Bitcoin’s dominance probably remains strong for the foreseeable future.
