Bitcoin Dominance Will Continue to Decline in Favor of Ethereum, Altcoins, FTX US President
Bitcoin has maintained dominance over altcoins like Ethereum and others for the longest time. This dominance, while it has waned over time, still helps the digital asset maintain its title as the most valuable cryptocurrency in the space. In just a few years, however, bitcoin’s dominance in the market has halved, and according to FTX US President Brett Harrison, the breach is far from over.
Bitcoin loses more market share to Altcoins
In a recent interview on CNBC’s Squawk Box, FTX.US President Brett Harrison shares his thoughts on the market, specifically bitcoin’s market dominance in relation to altcoin. The dominance of the pioneer cryptocurrency has been a slow but steady downward trend with bitcoin’s dominance falling to just 40% and Harrison expects it to continue.
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The president told Squawk Box that other digital assets such as Ethereum and Solana will continue to take more market share of the assets. And over time, Harrison explained, the percentage of market share controlled by a single asset, in this case BTC, will continue to decline.
“Assets like Ether, other alternative proof-of-stake assets like Solana, and these other alternative currencies are all increasing in terms of market cap,” Harrison said. “Over time, we will see less and less of the total market share coming from just one asset, Bitcoin alone.”
With this current trend, the market is expected to see BTC’s dominance over the market diminish more. This does not mean that the digital asset will become less important, but as investors turn to altcoins for better opportunities, BTC will find that it will start to gain less and less market share.
BTC’s dominance over time
Like everything in the crypto space, bitcoin’s dominance in the market has fluctuated widely. However, one thing remains constant and that is the fact that altcoins continue to eat up this market share.
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Just five years ago, before Ethereum and Cardano became their own, Bitcoin held the vast majority of the market share. In February 2017, the market share of the digital asset was 96%† Five years later, it has lost half of this dominance to sit at 43.08% at the time of writing.
BTC dominance drops to 43% | Source: Market Cap BTC Dominance on TradingView.com
The decline has been clearly visible over the years. In 2018, just a year later, bitcoin managed to lose more than 50% of its dominance and hit its lowest point of 35%. Since then, it has gained more market share, but trends point towards further disadvantage as blockchains like Ethereum and Solana steal more market share with DeFi and NFT capabilities.
Featured image of Banking Exchange, chart from TradingView.com