While the prices of many alternative cryptocurrencies are rocketing, the Bitcoin price continues to hover around the $ 9,000 USD range. Breakouts downwards, but especially upwards, do not occur. As a result, Bitcoin dominance continues to decline. Now it reached a value that had not been ascertained in 12 months.
Bitcoin dominance drops to 62,01%
Bitcoin dominance is a value to measure the distribution between bitcoins and altcoins. It describes the share of Bitcoin's market capitalization in the entire crypto market. This value now reached a new low, which was last measured a year ago.
As the coinmarketcap chart shows, Bitcoin dominance dropped to 62,01% for the first time in a year. Bitcoin dominance peaked in the past 12 months in early September 2019. At that time, the market capitalization of the world's oldest and largest cryptocurrency accounted for more than 69% of the total market:
But the current price trends of current cryptocurrencies continue to drop Bitcoin dominance. Smaller projects with a small market capitalization and projects in the DeFi area in particular are enjoying major price increases. This currently makes major cryptocurrencies such as Bitcoin and Ethereum uninteresting. However, little new money flows into the market.
Despite the old season: total capitalization stagnated
Due to the price increases, which are otherwise only known from 2017 and 2018, many have already started the old season and altcoins are giving investors high profits. However, despite the enormous price increases of many altcoins, the total market capitalization has not increased significantly, as the following graphic by coinmarketcap shows. Compared to the beginning of June, it has even decreased.
The market capitalization of the crypto market including Bitcoin is currently $ 275 billion. The crypto market celebrated its all-time high in early January 2018, when the market capitalization stood at $ 830 billion USD. A value that has not been achieved to date.
But if investors take their profits from altcoins and put them back in Bitcoin (BTC), it could be interesting. A rise to over $ 10,000 USD is likely to be an important psychological brand for many. Until then, investors will try to benefit from the currently greatest hype: decentralized finance (DeFi).
Markus from Kryptokumpel.de
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