After reaching its biggest market capitalization dominance since November 2021 last week, Bitcoin is regaining market share from altcoins.
The pioneer momentarily accounted for almost 42% of the global crypto market cap in late January, according to CoinMarketCap data.
Bitcoin Dominate Alt coins
Since its inception, Bitcoin has been the most popular cryptocurrency. Its domination was unequaled for a long time, as the digital coin’s performance influenced the market’s outcome, bringing altcoins along for the ride in either win or loss scenarios.
The influx of new altcoins into the crypto market, all with the goal of dethroning Bitcoin, threw its supremacy into disarray as a slew of altcoins fought for a piece of the pie, ranging from ethereum to dogecoin.
Bitcoin dominance 1-day candle chart. Source: TradingView
Despite the fact that Bitcoin has been in the red for the majority of the month, its portion of the $1.68 trillion crypto market has increased to around 42%, up from 39% two weeks ago. Bitcoin’s market capitalization has increased for the first time since mid-October, when it dropped from a peak of 46 percent. Throughout the second half of January, Bitcoin has managed to maintain its 40 percent market share.
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Unlike traditional market capitalization, which has remained relatively consistent since the all-time highs in November, realized capitalization has remained reasonably stable since the all-time highs in November, now sitting 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 long-time adversaries, appear to be in severe trouble, with bitcoin’s 20 percent drop in January to about $37,000 still dwarfing the aforementioned.
Ether has dropped 34% since the beginning of the year and continues to be wobbly 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 on-chain analytics startup Glassnode, the value being exchanged on the Ethereum blockchain per $1 in fees is dropping compared to Bitcoin.
According to additional data, Bitcoin transaction costs now account for only 1% of the fees paid for ETH transactions.
Polkadot is down 41%. Solana, which grew 100-fold in 2021, is now down 47%.
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Featured image from Pixabay, chart from TradingView.com and Messari
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