Bitcoin reaches highest market share since 2017

Bitcoin dominance reached 69.6% on August 10, the highest level in the past two years. In the latest July trend report from Binance Research, researchers stated that these historical highs represent a victory for Bitcoin supporters.

Bitcoin Dominance in July
As of the end of July, Bitcoin's market dominance reached 64%, up from 61% in June. According to real-time data from coin.dance, as of August 10th, Bitcoin's dominance continues to rise, with the previous high dating back to March 2017 at 72.03%.

Binance Research pointed out that this is a victory for "Bitcoin maximalists," especially long-term supporters who believe Bitcoin will eventually become the best currency.

However, this may only be a temporary victory as Binance does not believe that Bitcoin's dominance will continue indefinitely. Researchers stated:

Bitcoin's market dominance is expected to return to normal levels, around 50% to 60%, and the current trend can only wait to see if market dominance will shift back to altcoins.

Historical Perspective
In fact, Bitcoin has not yet reached its historical highest level. In the early years of Bitcoin's existence, its market dominance steadily remained above 80%, mainly due to the fewer tokens in the market at that time.

However, with the launch of more blockchain projects gradually occupying the crypto market share, Bitcoin's dominance rapidly declined in early 2017. In the first half of 2017, Bitcoin's dominance dropped to below 40%, paving the way for Ethereum and Ripple. Ethereum reached a dominance of 32.54% in June 2017.

Conservative Investor Behavior

Reports indicate that Bitcoin's dominance does imply a lack of interest from investors in altcoins. Binance observed in July that despite the low prices, trading volumes for altcoins remained sluggish. Binance Research noted:

Investors are not very interested in altcoins. Although there was high trading volume for altcoins at the beginning of July, the battlefield quickly shifted to Bitcoin and stablecoin trading.

While Bitcoin's dominance has been below 50%, other projects have occupied more than 50% of the market share, but no project has surpassed Bitcoin, except for Ethereum which came close in June 2017 when Bitcoin's dominance was only 39.7%.

Overall, despite the comings and goings of altcoin projects, the future of Bitcoin remains uncertain, but Bitcoin remains the primary market indicator.

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