Key Points
- Bitcoin’s market dominance has risen past 50% despite market fluctuations.
- Ethereum also had its moment of increased market share following spot ETF approvals.
Bitcoin’s market share in terms of its market capitalization compared to the total market capitalization across all cryptocurrencies increased to 52.92% over the weekend, a rise from less than 50% at the end of May.
Bitcoin, being the largest cryptocurrency by market cap, has seen fairly steady market dominance over the past year, hovering between 44% and 53%.
Bitcoin’s Market Dominance
A surge in Bitcoin’s dominance was observed last summer, largely driven by the excitement around spot ETF approvals which elevated Bitcoin relative to other cryptocurrencies. In April, Bitcoin’s dominance peaked at 52.86%, the highest since April 2021. This peak was a result of continuous growth in Bitcoin’s dominance following ETF approval and a sharp increase in Bitcoin’s position relative to other assets amidst fears of a wider conflict in the Middle East.
However, Bitcoin’s dominance began to wane as other assets, including memecoins, started to gain traction. Ethereum (ETH) had its moment of increased market share following its spot ETF approvals on March 23.
Bitcoin’s Position Amidst Market Fluctuations
Despite a slight slump in recent days, with Bitcoin down 5.3% for the past week following the Fed’s announcement of only one anticipated rate cut in 2024, Bitcoin’s dominance surged over the weekend. This surge reached a new high, unseen since April 2021, the beginning of the first major bull market, which helped boost other cryptocurrencies to significant market caps.
While all cryptocurrencies are typically grouped into the risk asset category, Bitcoin is often considered less risky than many of its counterparts due to its higher level of regulatory approval and institutional adoption.
However, Bitcoin’s dominance has started to decrease as other tokens begin to recover from the impact of the Fed’s announcement.
