Bitcoin Dominance Index Hovers at 45% as Altcoins Keep Collapsing
For the first time in 2018, the bitcoin dominance index is hovering around 45 percent as bitcoin is seemingly consolidating against the ongoing general altcoin sag.
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Bitcoin Dominance Steadily Rising Again
The cryptoeconomy is cyclical, and thus here comes the apparent return of bitcoin. After seeing its dominance sink to unprecedented lows against altcoins’ gains in December 2017 and January 2018, BTC is pushing back up in the market.
Bitcoin’s dominance hit 45 percent on March 17th, though it’s settled just below that at press time amid the current market chop. Accordingly, bitcoin’s market share now stands at $141 billion USD.
Bitcoin will have to keep looking over its shoulder, though. Last month, ethereum’s own dominance index reached its highest mark of 22.73 percent for the year 2018. At present, that statistic has slumped down to 16.84 percent.
BTC — a Haven for Traders
At the start of the year, experts were predicting big problems if issues such as BTC’s unfeasible transaction fees and network congestion were not solved. It is the reason crypto traders acutely turned to more cost-effective alternatives such as XRP, bitcoin cash, and ether. At that time, bitcoin’s market dominance fell to an all-time low of 32.35 percent.
Now, though, the altcoin market has slowed down considerably and bitcoin’s congestion has dissipated. When markets are all green, traders tend to invest in altcoins, of course. When the markets plummet, though, crypto traders flow back into “big-cap” coins, and bitcoin is the undisputed king of big-cap cryptocurrencies for now. BTC isn’t immune to losses, but it’s much more stable than nearly all of its peers.
The cycle of bitcoin’s falling and rising dominance in the crypto market is never-ending as things stand. When altcoins start to bounce back, it could push bitcoin’s dominance back below 40 percent. However, it is unknown where the cryptoeconomy will go from here. Up and down we go all the while.
Will BTC dominance cross the 50 percent mark shortly? Let us know your view in the comment section below.
Images via CoinLib, Earth Trekkers