Cryptocurrency News

Bitcoin Dominance Below 50% – Is Altcoin Boom Season Really On Its Way?

Bitcoin [BTC] dominance briefly fell below 50% last week for the primary time since January 2018, sending a robust signal that more speculative bets on altcoins were on a hike.

The Bitcoin dominance index, which measures BTC’s market capitalization relative to the broader cryptocurrency market, reached a low of 49.35% earlier on Thursday, consistent with CoinMarketCap. At the starting of this year, BTC dominance was 70.68%.

Ethereum [ETH], meanwhile, accounted for nearly 15% of the market at its peak on Thursday. ETH dominance is up nearly 4% points since the beginning of 2021.

ETH has outperformed BTC over the past 7 days, charting a powerful 9.5% return. The second-largest asset by market cap is down 10% from its earlier all-time high whereas Bitcoin has corrected over 20%.

Binance Coin [BNB] has also seen its share of the general market grow steadily this year, from 0.71% on 1st January to 4.17% on 25th April. BNB is being supported by several fundamental factors, along with growing adoption of the Binance platform and a coordinated burn of $600 Mln worth of tokens within the 1st quarter.

Moreover, cryptocurrencies outside the top 10 have also seen their share of the market inflate from but 11% to over 18% since 1st January.

Commenting on the market shuffle, Meltem Demirors, the CTO of crypto investment manager CoinShares, revealed that she is “seeing tons of parents chasing returns by moving further out on the danger spectrum.”

Demirors also observed that 94 crypto assets now have a market capitalization of $1 Bln or more. At the time of reporting, that figure had fallen to 87, consistent with CoinMarketCap. Around seven projects were valued at $900 Mln or more.

Analysts are divided about the pace and timing of the so-called alt season, a period of the market cycle where many altcoins surge against the USD and Bitcoin. Ben Lilly, co-founder, and analyst at Jarvis Labs added last week that he doesn’t believe now’s the time to reallocate from BTC to altcoins from a risk-adjusted perspective.

Additionally, analysis from Filbfilb, co-founder of the Decentrader trading suite, concluded that we are now approaching the expected boom period for altcoins.

At the reporting time, the present market capitalization for altcoins is $937 Mln.

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