Recent data reveals a surge in bitcoin’s dominance, a measure of its market capitalization in relation to the entire cryptocurrency sphere, reaching peaks not observed since February 2021. Present figures demonstrate that bitcoin (BTC) constitutes approximately 54% of the total cryptocurrency market value, with ethereum (ETH) trailing at just above 17%.
Bitcoin Dominance Rises From 40.2% to 54% in 12 Months
Bitcoin’s hegemony witnessed a significant swell this year, escalating from 40.2% in October 2022 to the current 54% by October 2023. Insights compiled by Tradingview on October 24, 2023, pinpoint fluctuations in bitcoin’s dominance, ranging from 53.44% to 54.11%.
Per Tradingview’s methodology, this calculation involves a comparative assessment of bitcoin against the aggregate value of the top 125 cryptocurrencies. The online platform underscores a noteworthy statistic: BTC’s rise to this level is a first in over 980 days — a span extending beyond two years and eight months.
Rewinding to January 2017 and prior, bitcoin’s representation eclipsed 80-90% of the entire crypto market. Ethereum (ETH), holding the title of the second-largest market capitalization, now embodies 17.6% of the crypto economy.
Despite ETH’s dominance standing at 21.24% in October 2021, it suffered a decline, reaching a low of 15% by May 2022. Just a year ago in October, ETH’s dominance clocked in at 19.3%, but it has been experiencing a downward trajectory since April 2023.
Conversely, BTC’s dominance has been climbing the ladder since April 2023, progressing from 47.89% to its present position. While ether’s share comes closest to bitcoin, other cryptocurrencies in the top ten pale in comparison, given that both collectively constitute 71% of the market.
For perspective, the third-largest cryptocurrency, tether (USDT), comprises a mere 6.667% of the expansive $1.26 trillion market. Following are BNB and XRP, representing 2.767% and 2.305% respectively.
Cumulatively, the top eight digital currencies, excluding BTC and ETH, encompass 17.55% of the market. Current data illustrates that today’s top ten cryptocurrencies collectively account for an overwhelming 88% of the total market.
In the whirlwind world of crypto, fortunes shift in a heartbeat, and it’s entirely plausible that these rankings could undergo a seismic transformation by the time October 2024 rolls around.
What do you think about bitcoin’s dominance rising? Share your thoughts and opinions about this subject in the comments section below.
