• Altcoin volume dominance has recently reached its highest level since January 2021, while Bitcoin’s dominance is at its lowest.
• The dominance by volume is an indicator which measures the percentage of the total crypto market trading volume that’s being contributed by a specific coin.
• Recently, Bitcoin’s dominance by volume has sharply decreased and has touched a value of just 16%, while the altcoins (other than Ethereum) have observed their dominance shoot up to 64%.
Cryptocurrency markets have seen a major shift in recent days. On-chain data shows that altcoin volume dominance is now at its highest level since January 2021, while Bitcoin’s dominance is at its lowest. This trend has been observed due to the fact that Bitcoin’s market share has been slowly declining, while other altcoins have been gaining traction.
The „dominance by volume“ is an indicator which measures 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 means that particular crypto is observing a higher amount of activity relative to the rest of the market currently, thus garnering more interest from investors. On the other hand, low values can imply that the crypto is losing mindshare at the moment as its volume percentage is going down.
Now, a chart that 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 reveals that 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.
Meanwhile, 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 Bitcoin has lost its market share to these alts recently.
This shift in market dynamics could be attributed to the fact that Bitcoin has been in a consolidation phase for the past few weeks. This has made it difficult for Bitcoin to break out of its current price range, resulting in investors shifting their focus to other coins. Additionally, several altcoins have also made significant gains in the last few days, which could have also contributed to the increased interest in the altcoin sector.
This shift in market dynamics is likely to continue in the near-term, as investors look to capitalize on the potential upside that can be gained from investing in altcoins. As such, it will be interesting to see if Bitcoin is able to regain its market share or if altcoin dominance continues to grow.