Bitcoin, currently the world’s most popular cryptocurrency, slowly loses dominance on the crypto market. Why that is and whether this trend is to continue will be depicted in today’s article. So, let’s get right to it.
The dominance of Bitcoin since the inception of cryptocurrencies
The dominance that Bitcoin has over all other cryptocurrencies on the market is displayed in percentage; at the time of writing, it is 45%. Which means that if we were to count all money that speculators invested in cryptocurrencies, Bitcoin would be almost a half of this amount. Believe it or not, Bitcoin, however, had even bigger dominance in the crypto sphere in the past and it is not so long ago when this percentage number was bigger by roughly 35%. The dominance of Bitcoin changes with each passing day, and it is not as stable as it used to be. For nearly 4 years, from April 2013 to March 2017, Bitcoin was crushing all other cryptocurrencies with its dominance ranging from 77% to 95%. After this date, the Bitcoin dominance is similar to a roller coaster, changing in a just a few days even by 10%.
Why it looks like Bitcoin is losing dominance
If you are one of the crypto enthusiasts who checks coinmarketcap.com almost every day, you have probably noticed that the dominance of Bitcoin isn’t what it used to be. You might think that the reason behind this is simply because Bitcoin is losing its popularity. That is, however, not true as Bitcoin market cap is gradually increasing. The true reason why Bitcoin is losing dominance on the crypto market is due to a rise of other cryptocurrencies. At the beginning of cryptocurrencies almost no one knew about other cryptocurrencies, but Bitcoin. Today, we have over 1300 cryptocurrencies, and almost every day we welcome new ones that already have their own supports. So it is not because people would withdraw money they invested in Bitcoin and invested it in other cryptocurrencies, but rather due to a general growth of the cryptocurrency market.
Is it a good thing?
The bigger the competition is, the more developers try to sharpen and improve their products and it is not anyhow different from cryptocurrencies. So, the supremacy of one coin is not any victory for us, users. The dominance of Bitcoin is not as important as the fact how individuals and companies integrate Bitcoin into their payment system and spread the use of the world’s most popular coin.
Summary – Why the dominance of bitcoin is shrinking
By now, we should all realize that Bitcoin is here to stay and even though there have been many speculators saying that Ethereum or other coins will take over, this is not very likely to happen in the near future. Bitcoin is still by far the biggest coin by market cap, and its dominance seems to be able to recover from whatever new bottom dominance the crypto market prepares.