Bitcoin‘s market share reaches 58% and strengthens its position in the crypto market
One of the main reasons for this increase is the decline of other digital currencies, such as Ethereum, the second-largest cryptocurrency.
On September 16, Bitcoin's dominance reached 58%, the highest level since April 2021. This means that Bitcoin now holds 58% of the total value of the crypto market. This is called "market dominance": the share of a specific coin relative to all other cryptocurrencies combined. This growth is a significant milestone for Bitcoin, which has been gaining more ground over the past two years. As Bitcoin strengthens, many other cryptocurrencies, including Ethereum, are losing market share.
Bitcoin‘s rise began in November 2022, when a major crypto exchange called FTX collapsed. This caused Bitcoin's price to temporarily drop to $16,000. Since then, Bitcoin has been on an upward trend, while other cryptocurrencies have struggled.
Ethereum's decline has played a significant role in Bitcoin's rise. Ethereum‘s market share has dropped by 30% over the past year, now accounting for less than 14% of the total crypto market. This loss of market share has allowed Bitcoin to grow further. Some analysts, like 'Rekt Capital', note that the last time Bitcoin was this strong, its market share continued to rise to as high as 71%. However, other experts, such as 'Cryptollica', believe that Bitcoin may eventually lose market share again, and other cryptocurrencies could regain ground.
As Bitcoin strengthens, other cryptocurrencies, known as altcoins, such as Ethereum, come under pressure. Since Ethereum underwent a major technical upgrade in 2022, it has struggled to keep up with Bitcoin's price growth. Even new exchange-traded products like Ethereum ETFs have had little impact on Ethereum's price due to low demand. Another sign that altcoins are struggling is the declining interest from traders. For example, Solana ($SOL), one of the popular altcoins, has seen trading interest drop significantly on crypto exchanges like Binance, from $1.2 billion in March to less than $680 million in September. This shows that many traders are pulling money out of altcoins and putting it back into Bitcoin. During a major market sell-off in August, it was once again evident that Bitcoin is seen as a safe haven. While most altcoins dropped significantly in value, Bitcoin remained relatively stable.
Demand for Bitcoin is also increasing in the traditional financial world. While investors seem less interested in Ethereum ETFs, demand for Bitcoin ETFs remains strong. Despite short periods of outflows (where investors temporarily withdraw funds), net inflows of $400 million were recorded in Bitcoin ETFs in August. This shows that large investors still have more confidence in Bitcoin than in other cryptocurrencies. However, not all experts are convinced that Bitcoin‘s dominance will continue to grow. Steven Cook, the founder of Dira Capital, believes that Bitcoin may soon reach its peak market share, but we may still see a short-term rise above 60%. Another factor to watch is the rise of stablecoins, such as Tether ($USDT). These coins are often used as safe trading tools when the market is unstable. Stablecoins are being traded more frequently, indicating their growing importance.
While Bitcoin maintains its position as the leader in the crypto world for now, altcoins remain under pressure. Whether this trend continues will depend partly on how cryptocurrency regulations develop and how market sentiment changes. For now, Bitcoin remains the favorite of both small and large investors in the volatile world of digital currencies.
Bitcoin continues to grow in the crypto world
On September 16, Bitcoin's dominance reached 58%, the highest level since April 2021. This means that Bitcoin now holds 58% of the total value of the crypto market. This is called "market dominance": the share of a specific coin relative to all other cryptocurrencies combined. This growth is a significant milestone for Bitcoin, which has been gaining more ground over the past two years. As Bitcoin strengthens, many other cryptocurrencies, including Ethereum, are losing market share.
Steady growth since the fall of FTX
Bitcoin‘s rise began in November 2022, when a major crypto exchange called FTX collapsed. This caused Bitcoin's price to temporarily drop to $16,000. Since then, Bitcoin has been on an upward trend, while other cryptocurrencies have struggled.
Why Ethereum is losing ground
Ethereum's decline has played a significant role in Bitcoin's rise. Ethereum‘s market share has dropped by 30% over the past year, now accounting for less than 14% of the total crypto market. This loss of market share has allowed Bitcoin to grow further. Some analysts, like 'Rekt Capital', note that the last time Bitcoin was this strong, its market share continued to rise to as high as 71%. However, other experts, such as 'Cryptollica', believe that Bitcoin may eventually lose market share again, and other cryptocurrencies could regain ground.
The impact on other cryptocurrencies (altcoins)
As Bitcoin strengthens, other cryptocurrencies, known as altcoins, such as Ethereum, come under pressure. Since Ethereum underwent a major technical upgrade in 2022, it has struggled to keep up with Bitcoin's price growth. Even new exchange-traded products like Ethereum ETFs have had little impact on Ethereum's price due to low demand. Another sign that altcoins are struggling is the declining interest from traders. For example, Solana ($SOL), one of the popular altcoins, has seen trading interest drop significantly on crypto exchanges like Binance, from $1.2 billion in March to less than $680 million in September. This shows that many traders are pulling money out of altcoins and putting it back into Bitcoin. During a major market sell-off in August, it was once again evident that Bitcoin is seen as a safe haven. While most altcoins dropped significantly in value, Bitcoin remained relatively stable.
What does the future hold for Bitcoin and the crypto market?
Demand for Bitcoin is also increasing in the traditional financial world. While investors seem less interested in Ethereum ETFs, demand for Bitcoin ETFs remains strong. Despite short periods of outflows (where investors temporarily withdraw funds), net inflows of $400 million were recorded in Bitcoin ETFs in August. This shows that large investors still have more confidence in Bitcoin than in other cryptocurrencies. However, not all experts are convinced that Bitcoin‘s dominance will continue to grow. Steven Cook, the founder of Dira Capital, believes that Bitcoin may soon reach its peak market share, but we may still see a short-term rise above 60%. Another factor to watch is the rise of stablecoins, such as Tether ($USDT). These coins are often used as safe trading tools when the market is unstable. Stablecoins are being traded more frequently, indicating their growing importance.
While Bitcoin maintains its position as the leader in the crypto world for now, altcoins remain under pressure. Whether this trend continues will depend partly on how cryptocurrency regulations develop and how market sentiment changes. For now, Bitcoin remains the favorite of both small and large investors in the volatile world of digital currencies.