Bitcoin Dominance Sinks as Ethereum, XRP Rise
The post Bitcoin Dominance Sinks as Ethereum, XRP Rise appeared on BitcoinEthereumNews.com.
In brief Bitcoin’s dominance is creeping down, but it’s too early to tell if it’ll become a trend, 21Shares’ Adrian Fritz said. At $2.3 trillion, Bitcoin’s dominance stood at around 61% on Friday. CoinMarketCap’s Altcoin Season Index stood at 43, leaning toward Bitcoin. Bitcoin’s grip on the $4 trillion cryptocurrency market may be loosening, but it’s still too early to tell whether that’ll translate into a sustained period of momentum for altcoins, Adrian Fritz, head of research at Switzerland-based asset manager 21Shares, told Decrypt on Friday. Although the price of many altcoins is surging, “there still needs to be a trend reversal” with Bitcoin’s so-called dominance in order for a so-called altcoin season to begin, he argued. At $2.3 trillion, Bitcoin’s dominance stood at around 61% on Friday, according to CoinGecko. At one point, the asset represented as much as 65.5% of the crypto market’s total value last month, across 17,000 cryptocurrencies tracked by the crypto data provider. The drop comes as Ethereum and XRP have jumped 20% to $3,600 and 23% to $3.46, respectively, over the past week, with the latter hitting a record high. Meme coins including the Solana-based Bonk and Ethereum-based Floki have meanwhile soared over 45% each. Nearly 60% of Myriad Markets users predict that Ethereum will reach a record high this year. (Myriad Markets is a product of DASTAN, Decrypt‘s parent company.) In previous market cycles, altcoins have shown strength after Bitcoin’s price peaked. The trend suggests traders rotate toward more volatile assets as the bull market progresses, seeking higher returns. However, the crypto market has changed drastically in recent years. That includes the debut of spot Bitcoin exchange-traded funds in the U.S., a product that does not allow investors, whether individual or institutional, to reach for another asset on-chain. “It’s hard to imagine…
