Bitcoin, the world’s largest cryptocurrency, is facing a sharp decline in its market dominance as other digital currencies are posting strong gains. XRP, Binance Coin and Ethereum have jumped significantly in the last 24 hours.
According to the data published by Coinmarketcap, Bitcoin’s market dominance stands at around 55.9%, its lowest level since May 2019. The overall market cap of digital currencies has reached $1.95 trillion, its highest level on record.
Ethereum, the world’s second-largest crypto asset has gained nearly 20% in the last 7 days. ETH registered an all-time high of $2,140 on 3 April after a significant surge in retail and institutional demand. ETH’s current market cap stands at around $240 billion as the cryptocurrency has a market dominance of 12.3%.
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“XRP price is rising as Bitcoin’s market cap dominance is decreasing. It now sits at 55%. In the last market cycle, BTC dominance shrunk to roughly 35%, and I’ll not be surprised to see something like that again this cycle,” a crypto researcher mentioned on Twitter.
Finance Magnates earlier reported a surge in XRP and Binance Coin. Both cryptocurrency assets have gained substantial value in the last 7 days.
Bitcoin and Altseason
The market dominance of the world’s most valuable digital currency touched a low of 32.8% during the last bull season in January 2018. BTC’s market dominance reached a high of nearly 70% in January 2021. Bitcoin has been losing its market dominance sharply since the start of this year. Digital currencies like Ethereum, XRP, Binance Coin, Polkadot, Uniswap and Chainlink have posted strong gains in the last 13 weeks. DeFi boom and a growing interest in non-fungible tokens (NFTs) have also played an important role in Bitcoin’s recent market dominance dip.
BTC is currently trading near $59,000. The digital currency touched an all-time high of $61,200 on 14 March. Bitcoin reported its best Q1 performance since 2013 after a substantial gain of nearly 100% in the last 3 months. JPMorgan recently announced its Bitcoin target of $130,000 in a research note.