Bitcoin Market Dominance Hits Highest Since November 2021, No Alt Season In Sight


After hitting its biggest market cap dominance since November 2021 last week, Bitcoin is regaining market share from altcoins.

The pioneer currently accounted for nearly 42% of the global crypto market capitalization at the end of January, according to CoinMarketCap data.

Bitcoin Dominate Alt Coins

Since its inception, Bitcoin has been the most popular cryptocurrency. Its dominance was unmatched for a long time as the digital coin’s performance influenced the outcome of the market, leading altcoins to compete in both profit and loss scenarios.

The influx of new altcoins into the crypto market, all with the aim of dethroning Bitcoin, shook its supremacy as a slew of altcoins battled for a slice of the pie, ranging from ethereum to dogecoin.

Bitcoin Dominance 1 Day Candlestick Chart. Source: Trading Display

Despite Bitcoin being in the red for most of the month, its share of the crypto market has risen from $1.68 trillion to about 42%, up from 39% two weeks ago. Bitcoin’s market cap has risen for the first time since mid-October, when it fell from a high of 46 percent. During the second half of January, Bitcoin managed to maintain its 40 percent market share.

Related article | Bitcoin Supply on Exchanges Hits New Multi-Year Low of 13.27%

Unlike traditional market cap, which has remained relatively constant since its all-time high in November, realized capitalization has remained fairly stable since its all-time high in November, now standing at $453 billion, according to data from on-chain analytics firm. messari.

Bitcoin Realized Cap vs BTC/USD Chart. Source: Messari

Alt Coins in Free Fall

Ethereum and Solana, two of Bitcoin’s longtime adversaries, appear to be in serious trouble, with bitcoin dropping 20 percent in January to about $37,000, which is still dwarfed.

Ether is down 34% since the start of the year and remains shaky as the debate over record high fees and Ethereum 2.0, as well as questions about its ability to compete with Bitcoin, rages on.

According to data from the on-chain analytics startup Glassnode, the value exchanged on the Ethereum blockchain is decreasing per $1 in fees compared to Bitcoin.

According to additional data, Bitcoin transaction fees now make up just 1% of the fees paid for ETH transactions.

Polkadot is down 41%. Solana, which grew 100 times in 2021, is now down 47%.

Related article | Goldman Sachs: Mainstream Adoption Won’t Raise Bitcoin Price

Featured image from Pixabay, chart from TradingView.com and Messari

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