According to analysts, the Bitcoin dominance index will inevitably fall below 50% for the first time in 3 years. Now the figure is 50.4% and continues to decline. Quotes reached exponential averages of $ 52,000- $ 51,000, from where the fall was actively bought back. But the likelihood of a decline remains if buyers fail to gain a foothold above $ 58,000 in the coming days.
Moreover, many experts are confident that if altcoins are strengthening in the near future, then there is a high probability that the share of transactions with bitcoin could fall even below 60%.
The weakening of the coin’s position will only play into the hands of the entire cryptocurrency market, as it will become healthier and less dependent on the dynamics of the movement of the largest digital currency.
One of the main reasons for this dynamics will be the transition of some investors to altcoins. This policy may be related to the desire of players to balance their reserves in the cryptosphere.
At the same time, experts admit that in the short term, the level of Bitcoin dominance may continue to grow.
Altcoins are gradually emerging from the shadow of their older brother Bitcoin
While Bitcoin is struggling to maintain its 50% dominance, on the contrary, the value of ETH is approaching an all-time high. During the day coin added 7% and fixed at $ 2,450. The recent fork of Berlin has strengthened the ecosystem’s position – insignificant in itself, but clearing the way for the renewal of London. The solutions in the new update, according to the developers, will help to cope with the problems of low speeds and high network fees.
UNI, the token of the Uniswap decentralized exchange, represented in ETH, feels even more confident. The asset goes to the 9th line of the rating of the largest, having added 17% in 24 hours. The price of 1 UNI is $ 37. The optimism around the exchange is associated with the launch of the updated protocol V3 in test mode.
In addition, the Ripple currency surged 11 percent to $ 1.41 at a premium to the exchange rate. Bitcoin Cash (BCH) also posted a solid 9.2% gain. With Cardano (ADA), Polkadot (DOT), and Litecoin (LTC), profit are between 5 and 7 percent.
This is an old game in the cryptocurrency market: if Bitcoin weakens, investors flock to altcoins. Exchange-traded tokens especially benefit from such a large volume of trading on marketplaces. However, the most popular Dogecoin (DOGE) in the past few weeks fell 18 percent to $ 0.33.
The dominance of BTC, and with it the distribution of the cryptocurrency market share, has shifted in favor of altcoins over the course of several weeks. The dominance rate of 51 percent fell to a three-year low.
However, on the contrary, this is a good signal. The fact that altcoins are less correlated with Bitcoin than they were a few months ago speaks to healthy market growth and shows a differentiating token landscape. The more strong players the market has, the more mature the crypto ecosystem becomes.