• Altcoin volume dominance recently touched a high of 64%, while Bitcoin dominance dropped to 16%.
• This suggests that BTC has lost its market share to altcoins recently.
• A chart shows the trend in the dominance by volume for Bitcoin and the altcoin sector.
The cryptocurrency market has been abuzz in recent days as altcoins have been gaining more and more attention from investors. On-chain data shows that altcoin volume dominance is now at its highest level since January 2021, while Bitcoin’s is at its lowest. This is a significant development that could have long-term implications for the cryptocurrency market as a whole.
An analyst in a CryptoQuant post pointed out that Bitcoin’s dominance is just at 16% now. This metric, known as dominance by volume, is used to measure the percentage of the total crypto market trading volume that’s being contributed by a specific coin. When the value of this metric goes up for any crypto, it suggests that particular coin is observing a higher amount of activity relative to the rest of the market currently. On the other hand, low values can imply that the crypto is losing its mindshare at the moment as its trading volume percentage is going down.
Now, a chart shows the trend in the dominance by volume for the entire altcoin sector combined (minus Ethereum), as well as for Bitcoin, over the past couple of years. The two metrics seem to have gone opposite ways in recent days. Bitcoin’s dominance by volume has sharply decreased recently and has touched a value of just 16%. This is the lowest value BTC has observed during the last couple of years. On the other hand, the altcoins (other than Ethereum) have observed their dominance shoot up in the last week or so, as the metric now has a value of 64%. This suggests that BTC has lost its market share to these alts recently.
The rise in altcoin dominance by volume could be a sign of a shift in the cryptocurrency market. As more investors start to pay attention to altcoins, these tokens could start to gain more value. This could potentially lead to a bull run for the altcoin sector in the near future. Of course, it’s important to keep in mind that these are all just speculations at this point and the market could still go either way. Nevertheless, it’s worth keeping an eye on the altcoin market in the coming days and weeks as this could be an important development for the cryptocurrency space.