Bitcoin dominance, the metric that measures bitcoinâ€™s overall market capitalization against all the other crypto asset valuations has dropped considerably in recent weeks. At the end of February, bitcoin dominance levels started sliding downward from 61% to todayâ€™s 50%. Meanwhile, from the same point in time ethereumâ€™s market capitalization has increased from 11.8% to todayâ€™s 14.5%.
Bitcoin Dominance Sinks to 50%
Ever since the birth of alternative crypto assets, people have used a metric called bitcoin (BTC) dominance, a measurement that records BTCâ€™s entire capitalization against all the market capitalizations held by other coins.
Interestingly, minus a few small dips, BTCâ€™s dominance was above the 80% range from the day it was conceived to February 2017.
During the first week of January 2018, BTCâ€™s dominance dropped to an all-time low of 33%. This year, bitcoin dominance levels have been mostly above the 60% region and in January 2021, it neared 70%.
However, since February 28, BTC dominance has slid from 61% to a low of 50% on April 23. At the same time from February 28 until now, ethereum (ETH) has climbed from 11.8% to 14.5%.
A Myriad of Competitors Push Bitcoin Dominance Levels Lower
Ethereumâ€™s market cap is not the only coin eating away at BTCâ€™s dominance levels. Binance coin has captured the third position in terms of crypto market valuations and commands 4.33% of the crypto economyâ€™s entire $1.87 trillion market cap.
The stablecoin tether (USDT) holds 2.8%, XRP has 2.25%, and cardano (ADA) has 1.9% today. The top 15th position held by solana (SOL) and all the way to the seventh position dogecoin, commands .50% of the entire crypto-economy or more.
From October 2020 until today, the overall crypto capitalization excluding bitcoin has increased a great deal from $145 billion to close to a trillion. A great number of coins have seen gains alongside BTCâ€™s climactic bull run, but a few coins, in general, have eaten a lot more than most.
Tokens like ethereum, binance coin, cardano, XRP, and tether (USDT) as well have done the most damage to BTCâ€™s dominance levels.
What do you think about BTCâ€™s dominance levels dropping to record lows for 2021? Let us know what you think about this subject in the comments section below.
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